On Apr 9, 2014, Zacks Investment Research upgraded
Fidelity National Information Services
) to a Zacks Rank #1 (Strong Buy). With a strong return of 32.4%
over the past year and a positive estimate revision trend,
Fidelity is an attractive investment opportunity.
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Why the Upgrade?
We upgraded the stock on the back of strong 2014 outlook.
Continuing organic growth, growing customer base and margin
expansions driven by solid demand for the company's products are
the primary reasons behind this expectation.
Fidelity continues to add new clients in North America,
particularly from the banking industry. The company's recent
) to fight cybercrime is also a significant positive, as it will
help it to expand in the fast growing cyber security market.
Per a joint report from IDC and the National University of
Singapore (NUS), enterprises are expected to spend approximately
$500.0 billion globally to fight malware and data breaches in
Fidelity recently entered into a licensing agreement with
) to offer EMV enabled debit cards to its NYCE Payments Network
partners. We believe increasing EMV adoption in the U.S. will
drive Fidelity's top-line growth, going forward.
Moreover, strong demand for its solutions such as Cardless Cash
Access solution and Active Analytics suite are expected to boost
top-line growth in the near term.
Further, International sales are expected to drive growth, as the
company continues to win new awards. These will help it to face
significant competition from the likes of
Earnings Estimate Revision
Fidelity is expected to report stable first-quarter fiscal 2014
results on May 1, 2014. The Zacks Consensus Estimate has remained
constant at 56 cents per share over the last 30 days.
The Zacks Consensus Estimate for fiscal 2014 remained steady at
$2.50 per share over the last 30 days. For fiscal 2015, the Zacks
Consensus Estimate remained constant at $2.85 per share over the