Fidelity National: Swings In Investors' Sentiment Remain Irrational (Rating Upgrade)

FIS is down by almost 50% year-to-date and the intensity of the sell-off raises some questions regarding investors' sentiment. With a forward free cash flow yield of 12% and forward P/E ratio of 6, the market is already pricing-in a massive collapse in FIS profitability. The near-term guidance does not suggest any immediate problems and the probability of the market overreacting is quite high.