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With a market cap of $42.6 billion, Fidelity National Information Services, Inc. (FIS) is a prominent financial technology company. The Jacksonville, Florida-based company serves banks, capital markets firms, and merchants with core banking systems, payment processing, and digital solutions.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Fidelity National Information Services fits this description perfectly. With ongoing investments in cloud-native platforms and modernization, FIS is positioning itself to stay competitive amid fintech disruption.
However, the multinational corporation declined 11.8% from its 52-week high of $91.98 met on Nov. 4. Over the past three months, FIS shares have surged 13.8%, outshining the S&P 500 Index’s ($SPX) 7.6% rise.
However, shares of FIS have risen 4.9% over the past 52 weeks, underperforming $SPX’s 12.7% returns over the same time frame. In addition, FIS is up marginally on a YTD basis, while $SPX soared 2.7% in the same period.
Despite that, FIS stock has been on an uptrend recently, trading above its 50-day moving average since early June and over its 200-day moving average since the end of April.
FIS released its first-quarter earnings on May 6, prompting a 3.1% dip in its share price despite solid financial results. The company reported an adjusted EPS of $1.21, beating analyst estimates and up 11% from the previous year. Revenue rose 4% year-over-year to $2.5 billion, driven by strong performance across its segments. Banking Solutions generated $1.72 billion in revenue, while Capital Market Solutions contributed $764 million. During the quarter, FIS returned $670 million to shareholders, including $450 million in share buybacks and $220 million in dividends.
Its top rival, International Business Machines Corporation (IBM), has outpaced FIS. IBM shares have surged 62.1% in the last 52 weeks and moved up 25.7% on a YTD basis.
FIS has a consensus rating of “Moderate Buy” from the 29 analysts covering the stock, and its mean price target of $88.56 represents a potential upside of 9.2% from the prevailing market prices.
