How Is Fidelity National Information Services’ Stock Performance Compared to Other Information Technology Services Stocks?
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With a market cap of $36.1 billion, Fidelity National Information Services, Inc. (FIS) is a financial technology company providing solutions to financial institutions, businesses, and developers worldwide. The Jacksonville, Florida-based company operates through three segments: Banking Solutions; Capital Market Solutions; and Corporate and Other.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Fidelity National Information Services fits this description perfectly. The company advances the ways the world pays, banks, and invests and also provides its clients with fraud, risk management, and compliance solutions that help them run, grow, and protect their businesses.
However, the multinational corporation declined 24.2% from its 52-week high of $91.98. Over the past three months, FIS shares have dipped 17.1%, underperforming the Financial Select Sector SPDR Fund’s (XLF) 4.3% decrease.
In the longer term, shares of FIS have risen 1.2% over the past 52 weeks, underperforming XLF’s 15.2% gain over the same time frame. In addition, FIS has decreased 13.6% on a YTD basis, whereas XLF slipped 1.9% in the same period.
FIS stock has been trading below its 50-day moving average since mid-November last year. Also, the stock has fallen below its 200-day moving average since January.
Despite FIS reporting better-than-expected Q4 2024 adjusted earnings of $1.40 per share, the stock fell 11.5% on Feb. 11. The company’s revenue of $2.6 billion missed the consensus estimate, raising concerns about slower-than-anticipated growth, particularly in the Banking Solutions segment. Additionally, FIS provided a cautious 2025 revenue outlook of $10.4 billion - $10.5 billion and projected a lower-than-expected adjusted EBITDA margin of 41.3%. Investors also reacted negatively to the company’s softer-than-expected Q1 2025 EPS guidance of $1.17 - $1.22.
In contrast, rival International Business Machines Corporation (IBM) has outpaced FIS. IBM shares soared 26.2% in the last 52 weeks and moved up 13.6% on a YTD basis.
Despite FIS’ underperformance relative to its industry peers over the last year, analysts are moderately optimistic about its prospects. FIS has a consensus rating of “Moderate Buy” from the 30 analysts covering the stock and is currently trading below the mean price target of $85.36.
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.