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Valued at a market cap of $45.8 billion, Fidelity National Information Services, Inc. (FIS) engages in the provision of financial services technology solutions for financial institutions, businesses, and developers. The Jacksonville, Florida-based company provides banking and payments technology solutions, processing services, information-based services, risk management, and trading and asset services as well.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks and Fidelity National Information Services fits this criterion perfectly. The company supports the movement of around $9 trillion by executing approximately 75 billion transactions on behalf of more than 20,000 clients worldwide.
Despite a 1.5% decline from its 52-week high of $83.29, reached on Sep. 4, shares of this banking and payment technologies company have gained 6.3% over the past three months, surpassing the Dow Jones Industrials Average’s ($DOWI) 5% return over the same time frame.
Moreover, in the longer term, FIS stock is up 36.8% on a YTD basis, outpacing DOWI’s 8.3% gains. Shares of FIS have rallied 48.5% over the past 52 weeks, compared to DOWI’s 18.1% return over the same time frame.
FIS has been trading above its 200-day moving average since November last year and has remained mostly above its 50-day moving average during the period despite some fluctuations, indicating a bullish trend.
FIS’s outperformance is driven by its ability to capitalize on the global shift toward digital transformation and has also benefited from its organic growth in the banking and capital markets. The company’s commitment to technology and innovation in emerging markets has further contributed to its upward price movement.
Moreover, the stock surged 5.1% on Aug. 6 after its Q2 earnings release, which surpassed consensus earnings estimates and met the revenue estimates. The better-than-expected performance was driven by strong recurring revenue growth in both segments and new sales momentum, offsetting higher expenses. The company’s raised full-year outlook further boosted investor confidence.
FIS has also outpaced its rival, Jack Henry & Associates, Inc.’s (JKHY) 5.8% gain on a YTD basis and 14.1% return over the past 52 weeks.
Despite FIS’ outperformance, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 28 analysts covering the stock, and the mean price target of $84.58 suggests a premium of just 2.7% to its current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
