Back to top

Image: Bigstock

Fidelity National Information Services (FIS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Read MoreHide Full Article

The latest trading session saw Fidelity National Information Services (FIS - Free Report) ending at $61.71, denoting a -0.93% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.32%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.2%.

Coming into today, shares of the banking and payment technologies company had gained 1.43% in the past month. In that same time, the Business Services sector gained 5%, while the S&P 500 gained 4.59%.

Market participants will be closely following the financial results of Fidelity National Information Services in its upcoming release. The company plans to announce its earnings on February 26, 2024. The company is expected to report EPS of $0.95, down 44.44% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.52 billion, reflecting a 32.16% fall from the equivalent quarter last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Fidelity National Information Services. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.78% upward. Fidelity National Information Services currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Fidelity National Information Services is currently trading at a Forward P/E ratio of 14.4. For comparison, its industry has an average Forward P/E of 13.15, which means Fidelity National Information Services is trading at a premium to the group.

One should further note that FIS currently holds a PEG ratio of 1.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial Transaction Services was holding an average PEG ratio of 1.16 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 42% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fidelity National Information Services, Inc. (FIS) - free report >>

Published in