5 Best Diversified Bank Stocks to Invest In

In this article, we discuss the 5 best diversified bank stocks to invest in. If you want to read our detailed analysis of these stocks, go directly to 11 Best Diversified Bank Stocks to Invest In. 

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

Number of Hedge Fund Holders: 66    

Fidelity National Information Services, Inc. (NYSE:FIS) provides technology solutions for merchants, banks, and capital markets firms worldwide. On February 28, investment advisory Mizuho maintained a Buy rating on Fidelity National Information Services, Inc. (NYSE:FIS) stock and raised the price target to $76 from $73. 

At the end of the fourth quarter of 2023, 66 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in Fidelity National Information Services, Inc. (NYSE:FIS), compared to 65 in the preceding quarter worth $1.8 billion. 

In its Q4 2023 investor letter, Broyhill Asset Management, an asset management firm, highlighted a few stocks and Fidelity National Information Services, Inc. (NYSE:FIS) was one of them. Here is what the fund said:

“Recent investments in this bucket include Ball Corp, Fidelity National Information Services, Inc. (NYSE:FIS), and Avantor. Fidelity National Information Services is a payment provider for financial institutions and merchants around the world. We took a hard look at the business around the time we established our investment in Fiserv, discussed in detail here. Thankfully, we decided to pass at the time in favor of what we believed to be a much better competitively positioned business with a much stronger track record of execution. Since then, issues at FIS have gone from bad to worse. The $48 billion acquisition of Worldpay in 2019, which took leverage up to 5.5x on the balance sheet, hasn’t turned out quite as well as Fiserv’s acquisition of First Data. Fast forward to today, and FIS is unwinding prior mistakes, selling off a 55% interest in the recently acquired business (meaning we now have a hard number for the remaining 45% they own), and using proceeds to take leverage back down to 2.5x post close while repurchasing at least $3.5B of stock through next year. As a result, shareholders will be left with a cleaner balance sheet and a simpler organizational structure, consisting primarily of their very defensive, very profitable core banking business, which traded down to a single-digit multiple vs historical averages for the industry closer to 20x.”