We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investors Should Hold on to Fiserv (FISV) Stock
Read MoreHide Full Article
Fiserv, Inc. has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth.
The company has an expected long-term earnings per share (three to five years) growth rate of 16.5%. Its earnings are expected to increase 22.4% in 2021 and 17.4% in 2022. The stock has gained 27.7% in the past six months.
Factors That Bode Well
Fiserv has been consistent with share repurchases. During 2020, Fiserv repurchased 16.1 million shares for $1.64 billion. During 2019, the company repurchased 4.2 million shares for $394 million. In 2018 and 2017, the company had repurchased shares worth $1.91 billion and $1.17 billion, respectively. Such moves instill investors’ confidence and positively impact earnings per share.
Fiserv continues to expand its product portfolio through strategic acquisitions. The recent acquisition of Ondot Systems is expected to enhance its digital capabilities, strengthening its competitive position.
The company remains focused on streamlining its overall cost structure through rationalization of duplicate costs to attain planned cost synergies. It had implemented more than $1 billion of cost savings by December 2020.
Risks Associated
Fiserv’s total-debt-to-total-capital ratio of 0.39 was higher than the industry’s 0.38 at the end of fourth-quarter 2020. A higher debt-to-capitalization ratio indicates higher risk of insolvency in challenging times.
Further, the company’s cash and cash equivalent of $906 million at the end of the quarter was well below the long-term debt level of $20.3 billion. This indicates that the company doesn’t have enough cash to meet this debt burden. However, the cash level can meet the short-term debt of $384 million.
The long-term expected earnings per share (three to five years) growth rate for Interpublic, Cross Country Healthcare and NV5 Global is pegged at 2.4%, 12% and 16.9%, respectively.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Image: Shutterstock
Here's Why Investors Should Hold on to Fiserv (FISV) Stock
Fiserv, Inc. has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth.
The company has an expected long-term earnings per share (three to five years) growth rate of 16.5%. Its earnings are expected to increase 22.4% in 2021 and 17.4% in 2022. The stock has gained 27.7% in the past six months.
Factors That Bode Well
Fiserv has been consistent with share repurchases. During 2020, Fiserv repurchased 16.1 million shares for $1.64 billion. During 2019, the company repurchased 4.2 million shares for $394 million. In 2018 and 2017, the company had repurchased shares worth $1.91 billion and $1.17 billion, respectively. Such moves instill investors’ confidence and positively impact earnings per share.
Fiserv continues to expand its product portfolio through strategic acquisitions. The recent acquisition of Ondot Systems is expected to enhance its digital capabilities, strengthening its competitive position.
The company remains focused on streamlining its overall cost structure through rationalization of duplicate costs to attain planned cost synergies. It had implemented more than $1 billion of cost savings by December 2020.
Risks Associated
Fiserv’s total-debt-to-total-capital ratio of 0.39 was higher than the industry’s 0.38 at the end of fourth-quarter 2020. A higher debt-to-capitalization ratio indicates higher risk of insolvency in challenging times.
Further, the company’s cash and cash equivalent of $906 million at the end of the quarter was well below the long-term debt level of $20.3 billion. This indicates that the company doesn’t have enough cash to meet this debt burden. However, the cash level can meet the short-term debt of $384 million.
Zacks Rank and Stocks to Consider
Fiserv currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are The Interpublic Group of Companies (IPG - Free Report) , Cross Country Healthcare (CCRN - Free Report) and NV5 Global (NVEE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share (three to five years) growth rate for Interpublic, Cross Country Healthcare and NV5 Global is pegged at 2.4%, 12% and 16.9%, respectively.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Download now. Today the report is FREE >>