Fiserv (FISV - Free Report) closed the most recent trading day at $116.75, moving +1.36% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.2%.
Coming into today, shares of the financial services technology company had gained 0.95% in the past month. In that same time, the Business Services sector gained 3.13%, while the S&P 500 gained 2.67%.
FISV will be looking to display strength as it nears its next earnings release. In that report, analysts expect FISV to post earnings of $1.14 per share. This would mark year-over-year growth of 35.71%. Meanwhile, our latest consensus estimate is calling for revenue of $4.05 billion, up 161.24% from the prior-year quarter.
FISV's full-year Zacks Consensus Estimates are calling for earnings of $4.01 per share and revenue of $15.89 billion. These results would represent year-over-year changes of +29.35% and +172.89%, respectively.
It is also important to note the recent changes to analyst estimates for FISV. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. FISV is currently a Zacks Rank #2 (Buy).
Digging into valuation, FISV currently has a Forward P/E ratio of 28.74. This valuation marks a premium compared to its industry's average Forward P/E of 24.83.
We can also see that FISV currently has a PEG ratio of 2.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.78 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.