Fiserv’s (FI Quick QuoteFI - Free Report) varied range of products and services positions the company to cater to a multitude of sectors within the financial services industry, encompassing banks, credit unions, wealth management companies, payment processors, and various others.

It currently has a Value Score of B.Historically, value stocks have demonstrated strong returns, and in combination with top Zacks Rank stocks, they tend to exhibit even better performance and greater timeliness.

FI has outperformed the Zacks industry in the year-to-date period. The stock has increased 13.3% compared with the industry's 10.6% rise in the same time frame.

Factors Shaping Fiserv’s Future

Fiserv offers a wide range of products and services, including payment processing, core banking systems, digital banking solutions, and more. This diverse product and service portfolio allows it to serve various segments of the financial services industry, including banks, credit unions, wealth management firms, payment processors, and more. This diversity positions Fiserv as a comprehensive partner for financial institutions seeking technology solutions to streamline operations, enhance customer experiences, and stay competitive in a rapidly evolving industry.

Fiserv's financial health and stability are important factors. The company is demonstrating a consistent upward trend in its Return on Assets (ROA), which serves as a measure of its profitability and financial efficiency. In the second quarter, the company achieved an ROA of 5.6%, surpassing the previous quarter's figure of 5.5% and the year-ago figure of 5.2%. This increasing ROA trend signifies the company's effectiveness in improving its earnings for every dollar invested over time.

A Risk

Fiserv operates globally, which offers stability and growth prospects, but also exposes it to the impact of foreign currency exchange rate fluctuations. The company faces risks associated with the  currency rate changes due to its investments in foreign operations and revenues earned in currencies other than the U.S. dollar. Consequently, the revenues and profits from its international operations may fluctuate compared with the previous periods due to shifts in foreign currency exchange rates. In 2022, foreign currency exchange rate fluctuations had a negative impact, causing a 2% decline in revenues.

Zacks Rank & Stocks to Consider

Fiserv currently carries a Zacks Rank #3 (Hold).

The following better-ranked stocks from the Business Services sector are worth consideration:

Verisk Analytics (VRSK Quick QuoteVRSK - Free Report) has beaten the Zacks Consensus Estimate in three of the four previous quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, which reflects a decrease of 8.2% from the year-ago figure. Earnings are pegged at $5.71 per share for 2023, which is 14% above the year-ago figure. VRSK currently holds a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Automatic Data (ADP Quick QuoteADP - Free Report) currently has a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.

Broadridge (BR Quick QuoteBR - Free Report) currently carries a Zacks Rank of 2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings calls for a rise of 7.2% and 8.8%, respectively.