Why Fidelity National Information Services (FIS) is a Top Momentum Stock for the Long-Term

Core Viewpoint - The article emphasizes the importance of utilizing Zacks Premium services, including Zacks Rank and Style Scores, to enhance investment confidence and identify high-potential stocks. Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum characteristics, helping investors select securities likely to outperform the market in the short term [3][4]. - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4]. Value Score - The Value Score identifies attractive and discounted stocks using financial ratios such as P/E, PEG, and Price/Sales [4]. Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5]. Momentum Score - The Momentum Score assesses stocks based on price trends and earnings outlook changes, indicating favorable times to invest in high-momentum stocks [5]. VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum characteristics [6]. Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8]. - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores to narrow down choices [9]. Stock Highlight: Fidelity National Information Services (FIS) - Fidelity National Information Services, Inc. is a provider of banking and payments technology solutions, formed through a merger in 2006 [12]. - FIS holds a 2 (Buy) rating on the Zacks Rank and has a VGM Score of B, with a Momentum Style Score of A, indicating strong performance potential [13][14]. - Recent upward revisions in earnings estimates by analysts have increased the Zacks Consensus Estimate for FIS to $5.19 per share, with an average earnings surprise of 8.2% [13].