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Jacksonville, Florida-based Fidelity National Information Services, Inc. (FIS) engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. With a market cap of $45.7 billion, Fidelity operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," FIS fits this bill perfectly. Given the company serves 20,000+ clients and over 1 million merchant locations in 130+ countries, its valuation above this mark is not surprising. Its offerings include mobile and online banking, risk management, payments, trading and asset, lending, and more.
The stock touched its 52-week high of $91.98 on Nov. 4 and is currently trading 7.3% below that peak. FIS has gained 2.1% over the past three months, lagging behind the Technology Select Sector SPDR Fund’s (XLK) 10% gains during the same time frame.
However, the stock’s performance has remained much more impressive over the longer term. FIS has surged 42% on a YTD basis and 45.2% over the past 52 weeks, outpacing XLK’s 24.4% gains in 2024 and 27.1% returns over the past year.
To confirm the bullish trend and recent downturn, FIS has consistently traded above its 200-day moving average over the past year and below its 50-day moving average since mid-November.
FIS stock prices observed a marginal uptick after the release of its impressive Q3 results on Nov. 4. The company has continued to exceed Wall Street’s expectations. Driven by its continued execution and business momentum, Fidelity reported a notable 3.1% year-over-year growth in revenues, reaching approximately $2.6 billion. Meanwhile, the company’s adjusted EPS increased by an enormous 48.9% year-over-year to $1.40, surpassing analysts’ estimates by 8.5%. Moreover, observing the solid momentum FIS raised its full-year revenue and earnings guidance.
Furthermore, the company has continued to deliver value to shareholders through buybacks, in the past three quarters alone FIS has repurchased shares worth $3 billion, demonstrating its commitment to shareholders.
FIS has slightly lagged behind its peer Fiserv, Inc.’s (FI) 53.5% gains on a YTD basis and 52.3% returns over the past year.
Among the 31 analysts covering the FIS stock, the consensus rating is a “Moderate Buy.” The mean price target of $95.69 represents a 12.2% premium to current price levels.
