Compelling Reasons to Hold Fidelity National Stock for Now

Core Viewpoint - Fidelity National Information Services, Inc. (FIS) is experiencing growth driven by recurring revenue, international market presence, strategic acquisitions, and strong cash flows supporting investments [1] Financial Performance - FIS has a Zacks Rank of 3 (Hold) and its stock has increased by 27.4% over the past year, outperforming the industry growth of 22.6% [2] - The Zacks Consensus Estimate for FIS' 2025 earnings is $5.72 per share, reflecting a 10.4% improvement from the 2024 estimate, with revenues projected at $10.6 billion, a 4.2% increase from 2024 [4] - FIS has outperformed earnings estimates in three of the last four quarters, with an average surprise of 8.16% [5] Business Growth Drivers - FIS is achieving robust top-line growth, particularly in its Banking Solutions and Capital Market Solutions segments, with year-over-year revenue growth of 2% and 7% respectively in the first nine months of 2024 [6][7] - The company has a strong international presence in markets such as the UK, Germany, Australia, Brazil, and Canada, leveraging organic growth initiatives and strategic acquisitions to secure multi-year recurring contracts [8] Strategic Initiatives - FIS focuses on organic growth through innovative solutions and targeted sales and marketing initiatives to acquire new clients and strengthen market presence [9] - The company utilizes acquisitions to expand its product portfolio and geographic footprint, while partnerships enhance comprehensive solutions for clients [9] Technological Advancements - Increasing digitization across industries provides FIS with opportunities to capitalize on its technology solutions, supported by investments in cutting-edge technologies and infrastructure upgrades [10] Cash Flow and Shareholder Returns - FIS generates robust cash flows, enabling strategic investments and consistent shareholder returns through share buybacks and dividends, with a net cash increase of 7.1% year-over-year in the first nine months of 2024 and a dividend yield of 1.8%, higher than the industry average of 0.7% [11]