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.
Reasons Why Fiserv (FI) Stock is an Attractive Pick for Now
Read MoreHide Full Article
Fiserv (FI - Free Report) is a payment and financial services technology provider that has performed well over the past year and has the potential to sustain momentum in the near term. However, if you have not taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes FI an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of Fiserv have gained 16.8%, outperforming the 8.7% rally of the industry it belongs to.
Solid Rank: FIcurrently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Positive Earnings Surprise History: FI has a decent earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing three quarters and met once. It delivered an earnings surprise of 2.3% on average.
Strong Growth Prospects: The company’s revenues for 2024 and 2025 are expected to improve 7.2% and 8.9%, respectively, year over year. Earnings are anticipated to increase 15.6% in 2024 and 15.7% in 2025. The company has an expected long-term (three to five years) earnings per share growth rate of 14.3%.
Growth Factors: Fiserv’s business model is a combination of recurring revenues and high incremental margins of a scaled processing business with increased growth and margins. The company can outperform by new client addition, retaining and growing existing clients, and providing them with solutions that would offer more value. Clover, which is part of Fiserv, continues to lead the small business merchant SaaS market in terms of growth and scale. The company is planning to launch multiple Clover products this year, which is expected to increase its value-added solutions penetration.
Image: Shutterstock
Reasons Why Fiserv (FI) Stock is an Attractive Pick for Now
Fiserv (FI - Free Report) is a payment and financial services technology provider that has performed well over the past year and has the potential to sustain momentum in the near term. However, if you have not taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes FI an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of Fiserv have gained 16.8%, outperforming the 8.7% rally of the industry it belongs to.
Solid Rank: FIcurrently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Positive Earnings Surprise History: FI has a decent earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing three quarters and met once. It delivered an earnings surprise of 2.3% on average.
Strong Growth Prospects: The company’s revenues for 2024 and 2025 are expected to improve 7.2% and 8.9%, respectively, year over year. Earnings are anticipated to increase 15.6% in 2024 and 15.7% in 2025. The company has an expected long-term (three to five years) earnings per share growth rate of 14.3%.
Growth Factors: Fiserv’s business model is a combination of recurring revenues and high incremental margins of a scaled processing business with increased growth and margins. The company can outperform by new client addition, retaining and growing existing clients, and providing them with solutions that would offer more value. Clover, which is part of Fiserv, continues to lead the small business merchant SaaS market in terms of growth and scale. The company is planning to launch multiple Clover products this year, which is expected to increase its value-added solutions penetration.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are AppLovin (APP - Free Report) and Global Payments (GPN - Free Report) .
AppLovin currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
APP has a long-term earnings growth expectation of 20%. It delivered a trailing four-quarter earnings surprise of 60.9%, on average.
Global Payments presently carries a Zacks Rank of 2. It has a long-term earnings growth expectation of 14.2%.
GPN delivered a trailing four-quarter earnings surprise of 1.1%, on average.