We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investors Should Retain Fiserv (FI) Stock for Now
Read MoreHide Full Article
Fiserv (FI - Free Report) stock has gained 40.3%, outperforming 27.6% and 31.8% growth of the industry it belongs to and the Zacks S&P 500 Composite in the past year, respectively.
FI’s earnings for 2024 and 2025 are anticipated to grow 14.8% and 15.5% year over year, respectively. Revenues are expected to increase 7.8% in 2024 and 8.8% in 2025.
Factors That Auger Well
Fiserv expands its product portfolio via strategic acquisitions. In 2023, it acquired Skytef and Sled for $17 million, which would facilitate the expansion of the company’s distribution network, direct payment services and point of sale. The company acquired Finxact in 2022. This acquisition, combined with the newest financial solutions initiative in SMB payments with Cashflow Central, helps Fiserv win over larger banks and existing clients. These acquisitions are expected to set the stage for stronger growth in the upcoming years.
FI has a resilient business model with a diversified client base, serving non-discretionary spending categories. The company has continued to witness strong opportunities to cross-sell and integrate merchant and financial solutions, thereby assisting financial institutions to serve their merchant customers efficiently. Also, the company has assisted merchants in retaining more customers with the new financial service offerings.
Fiserv's current ratio at the end of fourth-quarter 2023 was pegged at 1.04, flat with the prior-year quarter. A current ratio of more than 1 indicates that the company should not have problems meeting its short-term obligations. In 2023, 2022 and 2021, Fiserv repurchased shares for $4.7 billion, $2.50 billion and $2.57 billion, respectively. Such moves instill investors’ confidence and positively impact the bottom line. Partly due to these tailwinds, the company’s shares gained 40.3% in the past year.
Some Risks
FI is prone to cyber threats since it manages sensitive data for clients and itself. These threats could hamper the company’s systems, provoking legal issues and hurting its business reputation. Although it has been investing significantly in security, challenges are persistent, which might affect its business and finances.
Image: Shutterstock
Here's Why Investors Should Retain Fiserv (FI) Stock for Now
Fiserv (FI - Free Report) stock has gained 40.3%, outperforming 27.6% and 31.8% growth of the industry it belongs to and the Zacks S&P 500 Composite in the past year, respectively.
FI’s earnings for 2024 and 2025 are anticipated to grow 14.8% and 15.5% year over year, respectively. Revenues are expected to increase 7.8% in 2024 and 8.8% in 2025.
Factors That Auger Well
Fiserv expands its product portfolio via strategic acquisitions. In 2023, it acquired Skytef and Sled for $17 million, which would facilitate the expansion of the company’s distribution network, direct payment services and point of sale. The company acquired Finxact in 2022. This acquisition, combined with the newest financial solutions initiative in SMB payments with Cashflow Central, helps Fiserv win over larger banks and existing clients. These acquisitions are expected to set the stage for stronger growth in the upcoming years.
Fiserv, Inc. Revenue (TTM)
Fiserv, Inc. revenue-ttm | Fiserv, Inc. Quote
FI has a resilient business model with a diversified client base, serving non-discretionary spending categories. The company has continued to witness strong opportunities to cross-sell and integrate merchant and financial solutions, thereby assisting financial institutions to serve their merchant customers efficiently. Also, the company has assisted merchants in retaining more customers with the new financial service offerings.
Fiserv's current ratio at the end of fourth-quarter 2023 was pegged at 1.04, flat with the prior-year quarter. A current ratio of more than 1 indicates that the company should not have problems meeting its short-term obligations. In 2023, 2022 and 2021, Fiserv repurchased shares for $4.7 billion, $2.50 billion and $2.57 billion, respectively. Such moves instill investors’ confidence and positively impact the bottom line. Partly due to these tailwinds, the company’s shares gained 40.3% in the past year.
Some Risks
FI is prone to cyber threats since it manages sensitive data for clients and itself. These threats could hamper the company’s systems, provoking legal issues and hurting its business reputation. Although it has been investing significantly in security, challenges are persistent, which might affect its business and finances.
Zacks Rank and Stocks to Consider
Fiserv currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks from the broader Zacks Business Services sector are AppLovin (APP - Free Report) and Futu Holdings (FUTU - Free Report) .
AppLovin (APP - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. APP has a long-term earnings growth expectation of 20%. You can see the complete list of today’s Zacks #1 Rank stocks here.
APP delivered a trailing four-quarter earnings surprise of 26.5%, on average.
Futu Holdings (FUTU - Free Report) currently carries a Zacks Rank of 2 (Buy). It has a long-term earnings growth expectation of 19.8%.
FUTU delivered a trailing four-quarter earnings surprise of 18.7%, on average.