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

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Fiserv, Inc.  is currently benefiting from strategic acquisitions and cost synergies. The company has an expected long-term earnings per share (three to five years) growth rate of 14.6%. Its earnings are expected to increase 26% in 2021 and 15.8% in 2022.

Factors That Auger Well

Fiserv continues to expand its product portfolio through strategic acquisitions. The recent acquisition of BentoBox is expected to enhance Clover’s omni-commerce capabilities. This factor will enable Fiserv to cater to the increasing demand for capabilities that enhance interaction between merchants and customers online. Another, Pineapple Payments has placed Fiserv in a position to expand the reach of its payment solutions, especially Clover and Clover Connect.

The company continues to focus on streamlining its overall cost structure through rationalization of duplicate costs to attain planned cost synergies.

Fiserv has been consistent in boosting shareholders’ value. During 2020, Fiserv repurchased 16.1 million shares for $1.64 billion. During 2019, the company repurchased 4.2 million shares for $394 million. In 2018 and 2017, the company had repurchased shares worth $1.91 billion and $1.17 billion, respectively.  Such moves instill investors’ confidence and positively impact earnings per share.

Fiserv, Inc. Price, Consensus and EPS Surprise

 

Fiserv, Inc. Price, Consensus and EPS Surprise

Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote

 

Some Risks

Fiserv’s cash and cash equivalent of $933 million at the end of third-quarter 2021 was well below the long-term debt level of $20.5 billion. This indicates that the company doesn’t have enough cash to meet this debt burden. However, the cash level can meet the short-term debt of $449 million.

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 Avis Budget (CAR - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .

Avis Budgethas an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 506.1% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.

Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 170.7% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN flaunts a Zacks #1 Rank.

CRA Internationalhas an expected earnings growth rate of around 61.2% for the current year. CRAI has a trailing four-quarter earnings surprise of 51%, on average.

CRA International’s shares have surged 78.8% in the past year. CRAI has a long-term earnings growth of 15.5%. The stock carries a Zacks #2 (Buy) Rank.


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