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Fidelity National Information Services (FIS) Stock Moves -0.9%: What You Should Know

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Fidelity National Information Services (FIS - Free Report) closed at $53.75 in the latest trading session, marking a -0.9% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.37%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 1.87%.

Heading into today, shares of the banking and payment technologies company had lost 4.3% over the past month, outpacing the Business Services sector's loss of 6.12% and the S&P 500's loss of 4.93% in that time.

Investors will be hoping for strength from Fidelity National Information Services as it approaches its next earnings release. In that report, analysts expect Fidelity National Information Services to post earnings of $1.58 per share. This would mark a year-over-year decline of 9.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.65 billion, up 1.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.02 per share and revenue of $14.6 billion, which would represent changes of -9.47% and +0.5%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Fidelity National Information Services. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Fidelity National Information Services is currently a Zacks Rank #3 (Hold).

Investors should also note Fidelity National Information Services's current valuation metrics, including its Forward P/E ratio of 9.02. Its industry sports an average Forward P/E of 13.25, so we one might conclude that Fidelity National Information Services is trading at a discount comparatively.

Meanwhile, FIS's PEG ratio is currently 0.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.17 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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