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Here's Why Investors Should Retain Fiserv (FISV) Stock Now
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Fiserv, Inc. is currently benefiting from strategic acquisitions and a steady flow of customers. The company has an expected long-term earnings per share (three to five years) growth rate of 13.4%. Its earnings are expected to increase 16.1% for 2022 and 13.7% for 2023.
Factors That Augur Well
Fiserv continues to expand its product portfolio through strategic acquisitions. The recent acquisition of Finxact is expected to expand Fiserv’s account processing, digital and payments solutions. It will help FISV better serve clients trying to accelerate and expand the digital banking experiences of their customers.
Fiserv’s diversified product portfolio continues to yield a steady flow of customers. The rapidly changing financial services industry and increasing demand for digital banking and payment services provide significant growth opportunities for Fiserv. Notably, first-quarter 2022 witnessed significant client additions. The company saw solid growth in account-to-account transfers and P2P, with all transactions up 40% in the reported quarter and the number of clients live on Zelle rising 57%. Backed by such strong demand, the company expects to witness more client additions moving ahead.
Fiserv has been consistent with share repurchases. In 2021, it repurchased 23.3 million shares for $2.57 billion. In 2020, it bought back 16.1 million shares for $1.64 billion. In 2019, the company repurchased 4.2 million shares for $394 million. Such moves instill investors’ confidence and positively impact earnings per share.
Some Risks
Fiserv has more debt outstanding than cash. Cash and cash equivalents balance of $863 million at the end of the first quarter was well below its long-term debt of $20.5 billion. However, the cash level can meet the short-term debt of $552 million.
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Here's Why Investors Should Retain Fiserv (FISV) Stock Now
Fiserv, Inc. is currently benefiting from strategic acquisitions and a steady flow of customers. The company has an expected long-term earnings per share (three to five years) growth rate of 13.4%. Its earnings are expected to increase 16.1% for 2022 and 13.7% for 2023.
Factors That Augur Well
Fiserv continues to expand its product portfolio through strategic acquisitions. The recent acquisition of Finxact is expected to expand Fiserv’s account processing, digital and payments solutions. It will help FISV better serve clients trying to accelerate and expand the digital banking experiences of their customers.
Fiserv, Inc. Revenue (TTM)
Fiserv, Inc. revenue-ttm | Fiserv, Inc. Quote
Fiserv’s diversified product portfolio continues to yield a steady flow of customers. The rapidly changing financial services industry and increasing demand for digital banking and payment services provide significant growth opportunities for Fiserv. Notably, first-quarter 2022 witnessed significant client additions. The company saw solid growth in account-to-account transfers and P2P, with all transactions up 40% in the reported quarter and the number of clients live on Zelle rising 57%. Backed by such strong demand, the company expects to witness more client additions moving ahead.
Fiserv has been consistent with share repurchases. In 2021, it repurchased 23.3 million shares for $2.57 billion. In 2020, it bought back 16.1 million shares for $1.64 billion. In 2019, the company repurchased 4.2 million shares for $394 million. Such moves instill investors’ confidence and positively impact earnings per share.
Some Risks
Fiserv has more debt outstanding than cash. Cash and cash equivalents balance of $863 million at the end of the first quarter was well below its long-term debt of $20.5 billion. However, the cash level can meet the short-term debt of $552 million.
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 Avis Budget Group, Inc. (CAR - Free Report) , Cross Country Healthcare (CCRN - Free Report) and FactSet Research Systems Inc. (FDS - Free Report) .
Avis Budgetsports a Zacks Rank #1. The company has a long-term earnings growth expectation of 19.4%.
Avis Budgetdelivered a trailing four-quarter earnings surprise of 102%, on average.
Cross Country Healthcare sports a Zacks Rank #1. The company has a long-term earnings growth expectation of 6.9%.
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 29.2%, on average.
FactSetcarries a Zacks Rank #2 (Buy). The company has a long-term earnings growth expectation of 10%.
FactSet pulled off a trailing four-quarter earnings surprise of 6.1%, on average.