Stock of the Day

November 14, 2022

Fidelity National Information Services (FIS)

$35.82
-$0.31 (-0.9%)
Market Cap: $18.51B

About Fidelity National Information Services

Fidelity National Information Services, Inc. engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. It operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. The company provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. It also offers trading and asset, lending, leveraged and syndicated loan markets, and treasury and risk solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida.

Fidelity National Information Services Bull Case

Here are some ways that investors could benefit from investing in Fidelity National Information Services, Inc.:

  • The stock currently trades at $34.24, which is significantly below its 52-week high of $68.98, offering a potential entry point for value-oriented investors who believe the market has overreacted to recent price target cuts.
  • Fidelity National Information Services, Inc. recently launched the FIS Agentic Insights Suite, an agentic AI solution designed for the office of the CFO that turns fragmented data into forward-looking intelligence for cash flow forecasting and risk management.
  • The company demonstrated strong operational performance in its most recent quarter, reporting earnings per share of $1.48, which exceeded the consensus estimate of $1.47, while achieving a net margin of 27.64% and a return on equity of 20.95%.
  • With a dividend yield of 5.17%, the stock provides a substantial income stream for investors, which is particularly attractive given the current low price-to-earnings ratio of 5.26 that suggests the stock may be undervalued relative to its earnings power.
  • Fidelity National Information Services, Inc. secured a significant new business win by having Kredittbanken ASA select its Total Issuing PRIME in the Cloud platform to modernize its core system for managing loans, deposits, and credit cards, signaling continued demand for its cloud-based solutions.

Fidelity National Information Services Bear Case

Investors should be bearish about investing in Fidelity National Information Services, Inc. for these reasons:

  • Multiple major financial institutions, including TD Cowen, Barclays, and Deutsche Bank, have recently lowered their price targets on the stock, with TD Cowen cutting its target from $53.00 to $47.00 and Barclays reducing its target from $43.00 to $38.00, indicating a bearish outlook from sell-side analysts.
  • The stock has experienced a significant decline, hitting a 52-week low of $32.10 and trading well below its 50-day moving average of $39.01 and 200-day moving average of $41.76, which suggests a persistent downward trend in investor sentiment.
  • Short interest in the stock has increased, with shares shorted rising to 19,572,838 as of the September 30, 2026 record date, representing a 3.98% month-to-month increase and indicating that a growing number of traders are betting against the stock's performance.
  • The company's current ratio and quick ratio are both at 0.53, which is below 1.0, suggesting that Fidelity National Information Services, Inc. may face liquidity challenges in meeting its short-term obligations with its current assets.
  • Despite recent earnings beats, the consensus rating for the stock has shifted to "Hold" with an average target price of $52.28, which is still well above the current price but reflects a lack of strong "Buy" conviction from the broader analyst community compared to earlier in the year.
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