Advertisement
Australia markets closed
  • ALL ORDS

    7,817.40
    -81.50 (-1.03%)
     
  • ASX 200

    7,567.30
    -74.80 (-0.98%)
     
  • AUD/USD

    0.6429
    +0.0004 (+0.06%)
     
  • OIL

    83.15
    +0.42 (+0.51%)
     
  • GOLD

    2,404.70
    +6.70 (+0.28%)
     
  • Bitcoin AUD

    100,556.23
    +1,594.90 (+1.61%)
     
  • CMC Crypto 200

    1,370.72
    +58.09 (+4.64%)
     
  • AUD/EUR

    0.6021
    -0.0010 (-0.16%)
     
  • AUD/NZD

    1.0894
    +0.0019 (+0.18%)
     
  • NZX 50

    11,796.21
    -39.83 (-0.34%)
     
  • NASDAQ

    17,263.36
    -130.95 (-0.75%)
     
  • FTSE

    7,874.36
    -2.69 (-0.03%)
     
  • Dow Jones

    37,969.43
    +194.05 (+0.51%)
     
  • DAX

    17,733.16
    -104.24 (-0.58%)
     
  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     
  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

Here's Why Fidelity National Information Services (FIS) Gained But Lagged the Market Today

The most recent trading session ended with Fidelity National Information Services (FIS) standing at $69.21, reflecting a +0.03% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.8%. Meanwhile, the Dow experienced a rise of 0.23%, and the technology-dominated Nasdaq saw an increase of 1.14%.

Heading into today, shares of the banking and payment technologies company had gained 10.05% over the past month, outpacing the Business Services sector's gain of 8.45% and the S&P 500's gain of 5.2% in that time.

The upcoming earnings release of Fidelity National Information Services will be of great interest to investors. The company is forecasted to report an EPS of $0.94, showcasing a 27.13% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.45 billion, reflecting a 30.17% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.58 per share and revenue of $10.13 billion, indicating changes of +35.91% and -17.31%, respectively, compared to the previous year.

ADVERTISEMENT

Any recent changes to analyst estimates for Fidelity National Information Services should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.94% higher. As of now, Fidelity National Information Services holds a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Fidelity National Information Services has a Forward P/E ratio of 15.09 right now. Its industry sports an average Forward P/E of 12.24, so one might conclude that Fidelity National Information Services is trading at a premium comparatively.

We can additionally observe that FIS currently boasts a PEG ratio of 0.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.01.

The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research