8 Best Cheap Growth Stocks To Invest In Now

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

Forward P/E Ratio: 16.21

Earnings Growth This Year: 51.30%   

Number of Hedge Fund Holders: 59

Fidelity National Information Services, Inc. (NYSE:FIS) is a global financial technology company. It provides Banking Solutions, Capital Market Solutions, Payment processing, and consulting and outsourcing services to banks of all sizes. The company operates in more than 100 countries with more than 20,000 clients.

Fidelity National Information Services, Inc. (NYSE:FIS) operates in a high-demand market enabling financial organizations to manage and move more than $9 trillion annually. It is improving its footprint and is on track for a record core signing in 2024. The Digital Banking wing of the company is also gaining more traction as it improved its new digital sales by 30% during the first half of 2024.

Financially speaking, the financial technology company does not fail to impress here either. It has grown its adjusted revenue by 4% year-over-year to reach $2.5 billion. While the revenue from Capital Markets was the strongest contender in growth, the Banking Solutions segment also grew 3% during the same time.

Fidelity National Information Services, Inc. (NYSE:FIS) also enjoys significant recurring revenue which accounts for around 81% of the total revenue. This helps the company generate significant cash flow. During the second quarter of 2024, it generated more than $504 million in free cash flow while capital expenditure was low at only 7% of the total revenue.

This financial technology company is trading at only 16 times its forward earnings, making it one of the best cheap growth stocks to invest in now.

Invesco Growth and Income Fund stated the following regarding Fidelity National Information Services, Inc. (NYSE:FIS) in its Q2 2024 investor letter:

“Given that many equity indexes reached record highs, valuation opportunities were limited and portfolio activity was somewhat muted. We purchased new holdings in financials, health care and IT. Fidelity National Information Services, Inc. (NYSE:FIS): The company is a leading global provider of financial services technology solutions for financial institutions, businesses and developers. The company has lagged its peers in recent years due to numerous acquisitions that increased its debt. However, a new CEO and CFO have made efforts to right size the firm and refocus on its core banking and capital market businesses by selling a partial stake in a recent acquisition. As a result, we believe the company should be able to increase selling opportunities, grow earnings and potentially return capital to shareholders.”