A fintech stock that's a holding of the Financial Select Sector SPDR ETF (XLF) is on the verge of a major breakout, and hardly anyone is talking about it. This is especially interesting given that the company name is shared by one of the most storied and biggest financial firms in history. We're talking about Fidelity National Information Services – FIS.
The stock is not related to Fidelity Investments, but we should be paying attention to it, nonetheless. First, some background: FIS has been around for more than 50 years. In that time, it has gone through several acquisitions and name changes.
According to their website: "The company was founded in 1968 as SystematicsTM, which was later acquired by ALLTEL Information Services, and then bought by title insurance giant Fidelity National Financial® in 2003, who renamed it Fidelity Information Services (FIS)." FIS has a market cap of $42 billion and ranks number 216 within the S & P 500. Within the XLF, it's No.
36 of 71. FIS is unique since it's also a member of the iShares Russell Midcap ETF (IWR). And, depending on where we look, it's sometimes classified a technology company.
Thus, the term "fintech" adequately describes FIS. Knowing this, it's no wonder FIS has performed a lot differently than the XLF over the past two years. From the October 2022 market low, XLF is up around 40%.
FIS is barely positive, meanwhile, with a gain just shy of 3%. Recently, though, FIS has shown signs of life. In fact, it's performed much bet.