Fidelity National Information Services is a leading global provider of financial technology solutions for merchants, capital market firms and banks.
Analyst Jason Kupferberg says Fidelity National’s sale of its majority ownership stake in Worldpay to private equity investors in the first quarter leaves the company well-positioned to generate significant recurring revenue and execute aggressive capital return programs moving forward. He says the company’s upcoming Investor Day event on May 7 will also provide investors with clarity on the company’s financial outlook and strategy following the Worldpay divestment and could be a bullish catalyst for the stock.
“We expect the ‘new’ FIS to have significant recurring revenue, a simplified business model and significant return of cash to shareholders in the form of both share buybacks ($3.5B+ in ’24, up from $3B+ prior with potential for further upside) and dividends (~35% payout ratio),” Kupferberg says.
Bank of America has a “buy” rating and $79 price target for FIS stock
FIS is a fintech company that is unrelated to Fidelity Investments, a Boston-based brokerage and money management firm, whose parent is Fidelity Management & Research Company.
The Motley Fool has positions in and recommends Alphabet, Amazon, Chewy, Fiverr International, Nvidia, PayPal, Salesforce, and Uber Technologies. The Motley Fool recommends the following options: short September 2024 $62.50 calls on PayPal.
It's true: September is the worst month for US stock market returns on average. We analyzed US stock market performance as far back as 1926 and found that the average return for September has been -0.85%. Over the same time period, every other month has had positive average returns.
September is traditionally the worst month of the year for the stock market, but it isn't all that bad. The average move over the past 30 years is down about 0.7%.
Overall, Yardeni Research forecasts S&P 500 operating earnings at $250 in 2024, up 12% vs 2023. He puts them at $270 in 2025 (up 8%) and $300 in 2026 (up 11.1%). These figures compare with analysts' consensus forecasts of $244.70 in 2024, $279.70 in 2025 and $314.80 in 2026.
The S&P 500 dropped sharply last week on worries about a slowing economy. September is living up to its reputation as a tough month for stocks. The S&P 500 fell 4.2% last week on concerns about the health of the U.S. economy. Friday's monthly jobs report showed the labor market added fewer jobs than expected.
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