/Fidelity%20National%20Information%20Services%2C%20Inc_%20logo%20on%20phone-by%20IgorGolovniov%20via%20Shutterstock.jpg)
Fidelity National Information Services, Inc. (FIS), headquartered in Jacksonville, Florida, provides financial services technology solutions for financial institutions, businesses, and developers. Valued at $42.5 billion by market cap, FIS is a leading global provider of financial services technology solutions and provides credit and debit card processing, electronic banking services, check risk management, check cashing, and merchant card processing services to financial institutions and merchants.
Shares of this leading fintech company have outperformed the broader market considerably over the past year. FIS has gained 32.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.2%. In 2024, FIS stock is up 27.2%, surpassing the SPX’s 11.5% rise on a YTD basis.
Zooming in further, FIS’ outperformance looks more pronounced compared to BlackRock Future Financial and Technology ETF (BPAY). The exchange-traded fund has gained about 5% over the past year. Moreover, FIS’ double-digit gains on a YTD basis outshine the ETF’s 2% returns over the same time frame.
FIS' strong performance is driven by its ability to capitalize on the global shift toward digital transformation and the rise in transaction volumes over the past years, bolstering financial results. Besides, its strategic investments in mobile banking and innovative product offerings have aligned with evolving consumer preferences, fueling growth. Moreover, FIS' commitment to technology and innovation in emerging markets has further expanded its market opportunities.
On Aug. 6, FIS shares closed up more than 5% after reporting its Q2 results. Its adjusted EPS of $1.36 beat Wall Street expectations of $1.23. The company’s revenue was $2.49 billion, meeting Wall Street forecasts. FIS raised its full-year outlook and expects adjusted EPS to be between $5.03 and $5.11 and revenue to be between $10.12 billion and $10.17 billion.
For the current fiscal year, ending in December, analysts expect FIS’ EPS to grow 50.7% to $5.08 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 28 analysts covering FIS stock, the consensus is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, two “Moderate Buys,” and 14 “Holds.”
This configuration is less bullish than a month ago, with 13 analysts suggesting a “Strong Buy.”
On Aug. 6, TD Cowen kept a “Hold” rating on FIS and raised the price target from $75 to $78, implying a potential upside of 1.6% from current levels.
The mean price target of $81.46 represents a 6.4% premium to FIS’ current price levels. The Street-high price target of $94 suggests an ambitious upside potential of 22.5%.
On the date of publication, Neha Panjwani 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.
