Fidelity National Information Services Inc (FIS): Today's Featured Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Fidelity National Information Services ( FIS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Fidelity National Information Services fell $1.06 (-2.8%) to $36.50 on average volume. Throughout the day, 3.1 million shares of Fidelity National Information Services exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $35.21-$37.10 after having opened the day at $36.04 as compared to the previous trading day's close of $37.56. Other companies within the Services sector that declined today were: Innovaro ( INV), down 15.7%, Point.360 ( PTSX), down 15.4%, ATA ( ATAI), down 11%, and Chanticleer Holdings ( HOTR), down 8.1%.
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Fidelity National Information Services, Inc. provides banking and payments technology solutions worldwide. The company offers financial institution core processing, card issuer, and transaction processing services, including the NYCE Network. Fidelity National Information Services has a market cap of $11.03 billion and is part of the diversified services industry. The company has a P/E ratio of 22.4, above the S&P 500 P/E ratio of 17.7. Shares are up 8.1% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Fidelity National Information Services a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Fidelity National Information Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, FreeSeas ( FREE), up 32.7%, Radio One ( ROIA), up 32.3%, Radio One Inc. Class D ( ROIAK), up 13.9%, and WidePoint Corporation ( WYY), up 12.5%, were all gainers within the services sector with DISH Network ( DISH) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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