FIS

Fidelity National Information Services (FIS) has declined 48% from its 52-week high amid growth concerns, but improving cash flow and margin expansion offer recovery prospects. Second-quarter free cash flow surged 220% to $525 million, and the Global Payments Issuer Solutions acquisition is expected to add $700 million in free cash flow by 2028.

However, lowered 2026 guidance for revenue growth (4.5-5%) and EBITDA growth (5.9-6.9%) highlight ongoing execution challenges. Recovery depends on translating integration benefits into sustainable margin gains and debt reduction rather than rapid revenue acceleration.

The article highlights two business services stocks with positive Earnings Surprise Prediction (ESP) metrics that may deliver positive earnings surprises: Fidelity National Information Services (FIS) with a +0.77% ESP ahead of its November 4, 2026 earnings report, and Parsons (PSN) with a +9.32% ESP before its October 28, 2026 earnings release. Both stocks hold a Zacks Rank #3 (Hold) rating.

Fidelity National Information Services (FIS), a banking and payment technologies company, demonstrates a strong history of beating earnings estimates with an average surprise of 3.47% over the last two quarters. The company's positive Earnings ESP of +0.77% combined with its Zacks Rank #3 (Hold) suggests another earnings beat is likely, as stocks with this combination historically beat consensus estimates nearly 70% of the time.

PagSeguro Digital shares jumped 21.4% to $10.95 on strong volume, driven by its integrated fintech platform and positive sentiment from Brazil's presidential election outcome. However, earnings estimate revisions have declined 4.3% over the past 30 days, suggesting caution about sustained momentum. The company carries a Zacks Rank #3 (Hold) rating.