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Here's Why Investors Should Retain Fiserv (FISV) Stock Now
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Fiserv, Inc. shares have gained 4.9% over the past six months against a 6.6% decline in the industry it belongs to.
The company has an expected long-term earnings per share (three to five years) growth rate of 13.4%. Its earnings are expected to increase 16.3% in 2022 and 13.2% in 2023.
Fiserv’s diversified product portfolio continues to attract a steady flow of customers. The rapidly changing financial services industry and increasing demand for digital banking and payment services provide significant growth opportunities for Fiserv. Backed by such strong demand, the company expects to witness more client additions moving ahead.
Fiserv continues to expand its product portfolio through strategic acquisitions. The recent acquisition of Finxact expands Fiserv’s account processing, digital and payments solutions. It is helping FISV to better serve clients trying to accelerate and expand the digital banking experiences of their customers.
Fiserv has been consistent with share repurchases. In 2021, it repurchased 23.3 million shares for $2.57 billion. In 2020, it bought back 16.1 million shares for $1.64 billion. In 2019, the company repurchased 4.2 million shares for $394 million. 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 second-quarter 2022 was $883 million compared with the long-term debt level of $20.9 billion.
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Here's Why Investors Should Retain Fiserv (FISV) Stock Now
Fiserv, Inc. shares have gained 4.9% over the past six months against a 6.6% decline in the industry it belongs to.
The company has an expected long-term earnings per share (three to five years) growth rate of 13.4%. Its earnings are expected to increase 16.3% in 2022 and 13.2% in 2023.
Fiserv, Inc. Price
Fiserv, Inc. price | Fiserv, Inc. Quote
Factors That Augur Well
Fiserv continues to expand its product portfolio through strategic acquisitions. The recent acquisition of Finxact expands Fiserv’s account processing, digital and payments solutions. It is helping FISV to better serve clients trying to accelerate and expand the digital banking experiences of their customers.
Fiserv has been consistent with share repurchases. In 2021, it repurchased 23.3 million shares for $2.57 billion. In 2020, it bought back 16.1 million shares for $1.64 billion. In 2019, the company repurchased 4.2 million shares for $394 million. 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 second-quarter 2022 was $883 million compared with the long-term debt level of $20.9 billion.
Zacks Rank and Stocks to Consider
Fiserv currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Business Services sector can consider stocks like Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget sports a Zacks Rank #1 (Strong Buy) at present. CAR has an earnings growth rate of 108.4% for 2022. You can see the complete list of today’s Zacks #1 Rank stocks here.
Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.
Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 12.1%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
CRA International flaunts a Zacks Rank of 1, currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.