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Fidelity National Information Services (FIS) Laps the Stock Market: Here's Why

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Fidelity National Information Services (FIS - Free Report) closed the latest trading day at $69.86, indicating a +0.81% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.39%.

The banking and payment technologies company's stock has climbed by 8.88% in the past month, exceeding the Business Services sector's gain of 2.03% and the S&P 500's gain of 2.97%.

The upcoming earnings release of Fidelity National Information Services will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.95, reflecting a 26.36% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.45 billion, down 30.23% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.65 per share and revenue of $10.13 billion, indicating changes of +37.98% and -17.31%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Fidelity National Information Services. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.87% higher. Right now, Fidelity National Information Services possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Fidelity National Information Services currently has a Forward P/E ratio of 14.9. This denotes a premium relative to the industry's average Forward P/E of 14.41.

Investors should also note that FIS has a PEG ratio of 0.88 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.19.

The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 41, this industry ranks in the top 17% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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