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3 Intriguing Finance Stocks to Watch as Q3 Earnings Approach: FI, IVZ, MCO

Several top-rated Zacks stocks will report their third quarter results this week, with a few standing out from the financial sector in particular.

Sporting a Zacks Rank #2 (Buy) here are three of these intriguing finance stocks to watch as their Q3 reports approach on Tuesday, October 22.

 

Fiserv - FI

Financial transaction services leader Fiserv (FI - Free Report)  has seen its stock soar nearly +50% this year with the company's growth prospects starting to catch investors' attention. Despite such an extensive rally, Fiserv’s stock still trades at a reasonable 22.5X forward earnings multiple. Furthermore, Fiserv’s Q3 earnings are expected to increase 15% to $2.24 per share with double-digit EPS growth in the forecast for fiscal 2024 and FY25.

It’s also noteworthy that Fiserv has reached or exceeded earnings expectations for 10 consecutive quarters posting an average earnings surprise of 2.75% in its last four quarterly reports. Providing fintech solutions to over 12,000 worldwide clients, Fiserv’s steady top line expansion is reassuring with Q3 sales thought to have increased 6% to $4.9 billion.

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Invesco - IVZ

Trading under $20 a share, Invesco’s (IVZ - Free Report)  stock shouldn’t be overlooked and notably checks an “A” Zacks Style Scores grade for both Growth and Value. Offering investment management services, Invesco distributes a broad range of securities with its specialties including Fixed-income, ETFs, Index funds, and other fundamental equities.

Most intriguing is that Invesco’s stock trades at 11.1X forward earnings with Q3 EPS expected to spike 26% to $0.44 (Current Qtr below) compared to $0.35 a share in the comparative quarter. Q3 sales are projected to be slightly up to $1.11 billion. Plus, IVZ trades under the optimum level of less than 2X sales with Invesco's top line forecasted to expand 2% in FY24 and slated to increase another 5% in FY25 to $4.62 billion.

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Moody’s - MCO

As a leading provider of credit assessment services, Moody’s (MCO - Free Report)  expansion has kept investors engaged with its stock up more than +20% year to date. Moody's intriguing top and bottom line expansion is expected to continue with Q2 EPS slated to climb 18% to $2.89 on sales of $1.73 billion, a 17% increase from the prior-year quarter.

Even better, Moody’s growth trajectory is on track to surpass its record fiscal 2021 which saw EPS at $12.29 and total sales of $6.21 billion with MCO sitting on gains of over +100% in the last five years.

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Bottom Line

Attributing to their buy ratings, earnings estimate revisions have remained higher for these top finance stocks and further suggest more upside especially if they can reach or exceed Q3 expectations while offering favorable guidance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Moody's Corporation (MCO) - free report >>

Invesco Ltd. (IVZ) - free report >>

Fiserv, Inc. (FI) - free report >>

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