Fidelity National Information Services Inc (NYSE:FIS) is among the best S&P 500 stocks with highest upside potential. On February 6, the investment research firm Stephens named Fidelity National Information Services Inc (NYSE:FIS) among its top stocks for 2026. This list includes companies that the firm believes stand to benefit from accelerating AI adoption.
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Regarding Fidelity, Stephens analysts note that the company is poised to benefit from the growing demand for real-time transaction processing and banking modernization. The firm also pointed out that Fidelity has stabilized following restructuring efforts. Consequently, the company has improved margins and strong free cash-flow generation. Expanding fintech partnerships is another positive. Taken together, these make Fidelity one of the best-balanced risk-reward stocks in the sector.
On January 27, Cantor Fitzgerald initiated coverage of Fidelity stock with an Overweight rating and assigned it a price target of $72. FIS has faced a loss of investor trust, but analysts believe it can recover over time with reset expectations. Management has shown confidence by buying back shares and continuing its 23‑year streak of dividend payments, which currently yield 2.7%. Cantor Fitzgerald noted FIS’s wide reach across business lines, calling it an important part of the financial ecosystem.
Looking ahead, fiscal 2026 is expected to be an investment year as FIS works to reposition its business, but warn that a weak economy and reduced bank IT spending could hurt growth. The firm also flagged risks from FIS’s low current ratio of 0.53, showing short‑term obligations outweigh liquid assets. Shares have already fallen 27% in the past six months, making execution of its turnaround plan critical.
Fidelity National Information Services (NYSE:FIS) is a multinational financial technology provider. Among other areas, its solutions are used in banking, investing, and payment processing. Founded in 1968, the company is headquartered in Jacksonville, Florida.
While we acknowledge the potential of FIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
