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Here's Why Investors Should Hold Fiserv (FISV) Stock Now
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Fiserv, Inc. is currently benefiting from strategic acquisitions and a consistent share repurchase program. FISV has an expected long-term earnings per share (three to five years) growth rate of 13.6%. Its earnings are expected to increase 15.4% in 2022 and 14.1% in 2023.
Factors That Augur Well
Fiserv continues to expand its product portfolio through strategic acquisitions. The recent buyout of Finxact is expected to boost FISV’s digital banking strategy, helping it offer smooth and personalized digital banking experiences to its clients. Another takeover BentoBox enhanced FISV’s omni-commerce capabilities. The buyout enabled FISV to cater to increasing demand for capabilities that enrich interaction between merchants and customers online.
Fiserv has been consistent with share repurchases for a while. In 2021, Fiserv repurchased 23.3 million shares for $2.57 billion. During 2020, Fiserv repurchased 16.1 million shares for $1.64 billion. In 2019, FISV bought back 4.2 million shares for $394 million. Such moves instill investors’ confidence in the stock and positively impact earnings per share.
Some Risks
Fiserv’s current ratio at the end of the December quarter was pegged at 1.03, lower than the current ratio of 1.05, reported at the end of the September quarter. Decreasing current ratio is not desirable as it indicates that Fiserv may have problems meeting its short-term obligations.
FactSet has an expected earnings growth rate of 15.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.
Shares of FactSet have surged 42.7% in the past year. FDS has a long-term earnings growth rate of 10%. FDS carries a Zacks Rank #2 (Buy).
Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.
The stock has surged 56% in the past year. CCRN sports a Zacks Rank #1.
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Here's Why Investors Should Hold Fiserv (FISV) Stock Now
Fiserv, Inc. is currently benefiting from strategic acquisitions and a consistent share repurchase program. FISV has an expected long-term earnings per share (three to five years) growth rate of 13.6%. Its earnings are expected to increase 15.4% in 2022 and 14.1% in 2023.
Factors That Augur Well
Fiserv continues to expand its product portfolio through strategic acquisitions. The recent buyout of Finxact is expected to boost FISV’s digital banking strategy, helping it offer smooth and personalized digital banking experiences to its clients. Another takeover BentoBox enhanced FISV’s omni-commerce capabilities. The buyout enabled FISV to cater to increasing demand for capabilities that enrich interaction between merchants and customers online.
Fiserv has been consistent with share repurchases for a while. In 2021, Fiserv repurchased 23.3 million shares for $2.57 billion. During 2020, Fiserv repurchased 16.1 million shares for $1.64 billion. In 2019, FISV bought back 4.2 million shares for $394 million. Such moves instill investors’ confidence in the stock and positively impact earnings per share.
Some Risks
Fiserv’s current ratio at the end of the December quarter was pegged at 1.03, lower than the current ratio of 1.05, reported at the end of the September quarter. Decreasing current ratio is not desirable as it indicates that Fiserv may have problems meeting its short-term obligations.
Zacks Rank and Stocks to Consider
Fiserv currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are FactSet Research Systems Inc. (FDS - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
FactSet has an expected earnings growth rate of 15.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.
Shares of FactSet have surged 42.7% in the past year. FDS has a long-term earnings growth rate of 10%. FDS carries a Zacks Rank #2 (Buy).
Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.
The stock has surged 56% in the past year. CCRN sports a Zacks Rank #1.