10 Best Information Technology Services Stocks to Buy Right Now

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1. Fidelity National Information Services, Inc. (NYSE:FIS)

Analyst Upside: 23.22%

No. of Hedge Fund Holders: 56

Fidelity National Information Services, Inc. (NYSE:FIS) provides financial services technology solutions for financial institutions, businesses, and developers. Over the last five trading sessions, FIS shares have fallen over 15% as the company missed analysts’ estimates for the 2025 guidance.

On February 11, BofA Securities reduced the price target on FIS shares from $96 to $87 while keeping a Buy rating on the stock. The analyst revised the price target followed by the 2025 guidance and its FCF conversion rate for 2024, which was reported at 77%, falling short of the expected 85%. The drop in the FCF conversion rate was mainly due to increased costs from IT providers and working capital deficits. The company’s new sales of digital solutions experienced a 70% year-over-year growth, driven by cross-sales into core clients.

For 2025, the company expects its FCF conversion rate to be around 82% and 85%, with improvements expected, driven by better accounts payable and receivable management. Fidelity National Information Services, Inc. (NYSE:FIS) returned $4.8 billion to shareholders through share repurchases and dividends in 2024, including $1.2 billion in the fourth quarter.

While we acknowledge the potential of FIS to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FIS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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