From Nasdaq: 2024-05-14 14:11:00

Fidelity National Information Services, Inc. (FIS) is set to grow with Future Forward initiative, cross-selling, vertical expansion, and margin growth. The company, with a market cap of $42.5 billion, offers banking and payments technology solutions. FIS stock is recommended for investment with a Zacks Rank #2 (Buy) and 19% growth in the past three months.

FIS is expected to see a 46.3% increase in earnings per share in 2024, with revenues reaching $10.1 billion. The company has beat earnings in two of the last four quarters. FIS benefits from recurring revenue growth, strong execution, and growth in banking and capital market segments. It continues to invest in emerging technologies like AI and blockchain.

FIS focuses on strategic partnerships and expanding into the crypto market, partnering with companies like Crypto.com and OKCoin. The company recently launched Atelio to embed financial services in client offerings. FIS returned $1.4 billion to shareholders in Q1 2024 and plans to return $4 billion through share buybacks by 2024. The company aims to maintain a 35% dividend payout ratio.

Investors should note FIS’s multi-year modernization initiative, which may lead to increased costs in the short term. But strategic planning is expected to drive long-term growth. Other top stocks in the business services space include MoneyLion Inc., Global Payments Inc., and WEX Inc. MoneyLion has a Zacks Rank #1 (Strong Buy) and significant year-over-year growth projected.

Global Payments and WEX, both holding a Zacks Rank #2, show positive growth in earnings and revenue. Global Payments beat estimates in each of the last four quarters with an average surprise of 1.1%. WEX beat earnings thrice in the past four quarters with an average surprise of 3.3%. FIS continues to be a strong player in the financial services sector with solid growth prospects.



Read more at Nasdaq: Why You Should Add Fidelity National (FIS) to Your Portfolio