With a market cap of $41.79 billion, Fidelity National Information Services, Inc. (FIS) is a global leader in financial technology solutions. Headquartered in Jacksonville, Florida, FIS offers a wide range of services, including payment processing, financial software, and consulting, making it a cornerstone in the financial services industry.
Fidelity National Information has significantly outperformed the broader market over the last year. The stock has gained 36.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 25.2%. In 2024 alone, shares of FIS rose 24%, surpassing SPX's 11.2% gains on a YTD basis.
Narrowing the focus, FIS’ outperformance looks more pronounced than that of the Global X FinTech ETF (FINX). The exchange-traded fund has gained 23.3% over this period. The ETF’s 1.8% decline on a YTD basis compares to the stock’s gains over the same time frame.
On May 6, Fidelity National Information reported Q1 results, exceeding Wall Street expectations for both EPS and revenue. The stock declined marginally on the day it released earnings but gained 5.5% on the following day.
For the current fiscal year, ending in December, analysts expect FIS’ EPS to grow 47.5% to $4.97 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 on two other occasions.
Among the 28 analysts covering FIS stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, two “Moderate Buys,” and 13 “Holds.”
This configuration is slightly less bullish than three months ago, with 14 suggesting a “Strong Buy.”
On May 7, Barclays analyst Ramsey El Assal maintained a “Buy” rating on Fidelity National with a price target of $83.00. However, Citi (C) analyst Andrew Schmitt maintained a “Hold” rating on the stock with a price target of $70.00.
The mean price target of $79 represents a 6.1% premium to FIS’ current price levels. The Street-high price target of $90 suggests an upside potential of 20.8%.
On the date of publication, Rashmi Kumari 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.
