Bull’s Eye Report: Fidelity National Information Services (FIS)

No need to follow the crowd away from FIS

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

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Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Fidelity National Information Services FIS Data Processing & Outsourced Services 7.3 +1.87% $36.37

Why We Like The Stock:

Fidelity National Information Services (NYSE:FIS) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in an strong sub-industry, Data Processing & Outsourced Services. Much like its competitors Mastercard (NYSE:MA), Visa (NYSE:V), Fiserv (NASDAQ:FISV), and Global Payments (NYSE:GPN), FIS had a good year in 2012 and looks like an attractive buy so far in 2013. The stock has pulled back to the $36.90 area, which makes for a good entry point.

On February 15, the stock gapped lower, falling all the way down to $35.21 before recovering intraday. The move was attributed to investor Warbug Pincus’s disclaimer that he had a 6.5% stake in the company in Dec. 2012, down from 9.2%. Though this isn’t great news, it’s also not fundamentally bad news like a poor earnings announcement, so we can use the pullback it has created as an advantage. With an immediate upside to the $38 area and a tight stop at the 50-day moving average ($36.37), FIS is a great low-risk, high-reward short-term play.

We Would Be Buyers:

At the current price (around $36.90).

Company Profile:

Fidelity National Information Services is a United States-based company that develops financial transaction solutions. The Company provides banking and payments technologies. Its products are Biller Direct, Card, Commercial Treasury, Core Banking, Document Output, eBanking, ePayment, Government, Hardware Solutions Healthcare, Image Lending, Loyalty Mobile Financial Services, NYCE Payments Network, Payment Network Solutions, Retail Payments, Risk, Fraud & Compliance, Sales and Service, Technology Platforms and Wealth Management Solutions. In addition, the company offers consumer healthcare payment solutions for patients, providers, plan administrators and financial institutions.

Stock Rating: 7.3

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Fidelity National Information Services – Last Three Months

FIS 1 300x168 Bull's Eye Report: Fidelity National Information Services (FIS)
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Fidelity National Information Services – Last 12 Months

FIS 2 300x168 Bull's Eye Report: Fidelity National Information Services (FIS)
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Fidelity National Information Services – Last Five Years

FIS 31 300x168 Bull's Eye Report: Fidelity National Information Services (FIS)
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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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