In the latest trading session, Fidelity National Information Services (FIS) closed at $56.90, marking a +0.92% move from the previous day. The stock outpaced the S&P 500’s daily loss of 1.22%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq lost 1.56%.
Coming into today, shares of the banking and payment technologies company had gained 0.57% in the past month. In that same time, the Business Services sector gained 0.02%, while the S&P 500 gained 0.54%.
Fidelity National Information Services will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.58, down 9.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.65 billion, up 1.2% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.02 per share and revenue of $14.6 billion, which would represent changes of -9.47% and +0.5%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Fidelity National Information Services. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% higher. Fidelity National Information Services is currently a Zacks Rank #3 (Hold).
Digging into valuation, Fidelity National Information Services currently has a Forward P/E ratio of 9.37. Its industry sports an average Forward P/E of 14.05, so we one might conclude that Fidelity National Information Services is trading at a discount comparatively.
Meanwhile, FIS’s PEG ratio is currently 0.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.26 based on yesterday’s closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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