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Here's Why Investors Should Retain Fiserv (FISV) Stock Now

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Fiserv, Inc. (FISV - Free Report) is benefiting from its diversified portfolio as well as pro-investor steps.

The Zacks Consensus Estimate for 2023 and 2024 earnings and revenues indicate growth of 12.8% and 14.4%, and 6.3% and 8.7%, respectively, year over year.

Factors That Augur Well

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 to Fiserv. Backed by strong demand, the company expects to witness more client additions moving ahead.

Fiserv has been consistent with share repurchases. During 2022, 2021, 2020 and 2019, the company repurchased 25.4 million, 23.3 million, 16.1 million and 4.2 million shares for $2.50 billion, $2.57 billion, $1.64 billion and $394 million, respectively. Such moves instill investors’ confidence and positively impact earnings per share.

Some Risks

Fiserv has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of fourth-quarter 2022 was $902 million compared with the long-term debt level of $21 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 Avis Budget Group, Inc. (CAR - Free Report) and ICF International, Inc. (ICFI - Free Report) .

Avis Budget currently carries a Zacks Rank #2 (Buy). CAR has a VGM score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best investment opportunities.

CAR delivered a trailing four-quarter earnings surprise of 78%, on average.

ICF International sports a Zacks Rank #1 at present. ICFI’s 2023 revenues and earnings are expected to have surged 10.4% and 6.4%, year over year, respectively.

ICF International delivered a trailing four-quarter earnings surprise of 9.2%, on average.

See More Zacks Research for These Tickers

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Avis Budget Group, Inc. (CAR) - free report >>

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

ICF International, Inc. (ICFI) - free report >>

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