Fiserv, Inc. FISV is currently benefiting from strategic acquisitions and a steady flow of customers. The company has an expected long-term earnings per share (three to five years) growth rate of 13.2%. Its earnings are expected to increase 16.3% in 2022 and 11.5% in 2023.
Factors That Augur Well
Fiserv’s diversified product portfolio continues to yield 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 the company. Backed by such strong demand, it expects to witness more client additions moving ahead.
Fiserv, Inc. Price and Consensus
Fiserv, Inc. price-consensus-chart | Fiserv, Inc. Quote
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.
Fiserv has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of third-quarter 2022 was $893 million compared with the long-term debt level of $20.8 billion.
Zacks Rank and Stocks to Consider
Fiserv currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding BAH, Paychex PAYX and Cross Country Healthcare CCRN.
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8% on average.
Paychex presently carries a Zacks Rank #2. PAYX has a long-term earnings growth expectation of 7.5%.
Paychex delivered a trailing four-quarter earnings surprise of 8.6% on average.
Cross Country Healthcare currently carries a Zacks Rank #2. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1% on average.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report