Strong And Under The Radar: Fidelity National Information Services (FIS)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Fidelity National Information Services ( FIS) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Fidelity National Information Services as such a stock due to the following factors:

  • FIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $68.7 million.
  • FIS is making at least a new 3-day high.
  • FIS has a PE ratio of 30.8.
  • FIS is mentioned 1.94 times per day on StockTwits.
  • FIS has not yet been mentioned on StockTwits today.
  • FIS is currently in the upper 20% of its 1-year range.
  • FIS is in the upper 35% of its 20-day range.
  • FIS is in the upper 45% of its 5-day range.
  • FIS is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on FIS:

Fidelity National Information Services, Inc. provides banking and payments technology, outsourcing, and consulting solutions worldwide. The stock currently has a dividend yield of 1.6%. FIS has a PE ratio of 30.8. Currently there are 4 analysts that rate Fidelity National Information Services a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Fidelity National Information Services has been 1.3 million shares per day over the past 30 days. Fidelity National Information Services has a market cap of $17.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.88 and a short float of 0.7% with 1.71 days to cover. Shares are up 12.6% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant 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, expanding profit margins, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.77, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.38, which illustrates the ability to avoid short-term cash problems.
  • 42.81% is the gross profit margin for FIDELITY NATIONAL INFO SVCS which we consider to be strong. Regardless of FIS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FIS's net profit margin of 9.37% compares favorably to the industry average.
  • FIDELITY NATIONAL INFO SVCS's earnings per share declined by 11.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, FIDELITY NATIONAL INFO SVCS reported lower earnings of $1.67 versus $1.82 in the prior year. This year, the market expects an improvement in earnings ($3.10 versus $1.67).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income has decreased by 12.7% when compared to the same quarter one year ago, dropping from $172.30 million to $150.50 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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