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Broadridge Financial Solutions, Inc. (BR) - free report >>
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Broadridge Financial Solutions, Inc. (BR) - free report >>
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Here's Why Investors Should Retain Fiserv (FISV) Stock Now
Fiserv, Inc. is benefiting from strategic acquisitions and consistent share repurchases.
Factors That Bode Well
Fiserv continues to expand its product portfolio through strategic acquisitions. The recent buyout of Inexact is expected to boost Fiserv’s digital banking strategy by helping it offer its clients smooth and personalized digital banking experiences. Also, the November 2021 buyout of BentoBox will enable Fiserv to cater to increasing demand for capabilities that enhance online interactions between merchants and customers.
Fiserv has been consistent with share buybacks. In 2021, Fiserv repurchased 23.3 million shares for $2.57 billion. During 2020, Fiserv bought back 16.1 million shares for $1.64 billion. In 2019, FISV repurchased 4.2 million shares for $394 million. Such moves instill investors’ confidence in the stock and boost the earnings per share.
Some Risks
Fiserv has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of second-quarter 2022 was $883 million compared with the long-term debt level of $20.9 billion.
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 Broadridge Financial Solutions, Inc. (BR - Free Report) , Paychex, Inc. (PAYX - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Broadridge carries a Zacks Rank #2 at present. BR’s current-year earnings and revenues are expected to be 9.4% and 7.5%, respectively.
Broadridge delivered a trailing four-quarter earnings surprise of 4.1%, on average.
Paychex carries a Zacks Rank of 2 at present. PAYX has a long-term earnings growth expectation of 7.5%.
Paychex delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Cross Country Healthcare carries a Zacks Rank of 2, currently. CCRN has a long-term earnings growth expectation of 10%.
CCRN delivered a trailing four-quarter earnings surprise of 26%, on average.