Fiserv, Inc.: A Leader in Financial Technology Sees Strong Growth
In the fast-paced world of financial technology, Fiserv, Inc. (FI), based in Milwaukee, Wisconsin, stands out with a market cap of $125.7 billion. The company is known for its innovative payment solutions, making it easier for businesses and consumers to handle transactions and financial activities across the globe.
Large-Cap Leader in Global Payments
Categorized as a “large-cap stock,” Fiserv operates in over 100 countries, providing a wide array of financial services such as payment processing systems, point-of-sale technology, and digital banking platforms. Fiserv has earned its reputation as a vital player in the financial services sector.
Current Trading Status and Stock Performance
As of now, Fiserv is trading 2.1% below its 52-week high of $223.23, which it achieved on November 26. Over the past three months, the company’s shares increased by 25.2%, outperforming the Nasdaq Composite’s ($NASX) 9.5% gain in the same period.
Over a longer time frame, FI stock has grown by 64.5% year-to-date and surged by 67.3% in the last 52 weeks. In contrast, the NASX saw a 29.3% increase in 2024 and a 35.6% rise over the past year.
Stock Trends Indicate Positive Momentum
FI has remained above its 50-day and 200-day moving averages over the past year, signaling a continued bullish trend in its stock performance.
Impressive Earnings and Upgraded Guidance
Following the release of its Q3 earnings on October 22, which surpassed market expectations, Fiserv’s shares climbed 1.3%. The quarter reflected a solid organic revenue growth rate of 15%, driven by a 24% increase in the Merchant Solutions segment alongside a 6% growth in the Financial Solutions segment. Adjusted earnings per share grew by 17% year-over-year, landing at $2.30 for Q3.
Fuelled by this strong performance, Fiserv updated its full-year 2024 forecasts. The new projections indicate organic revenue growth between 16% and 17%, with adjusted EPS estimated between $8.73 and $8.80.
Comparative Performance Against Competitors
In comparison, Fiserv’s competitor, Fidelity National Information Services, Inc. (FIS), has lagged behind. FIS has posted a 42.1% gain over the past year, with a year-to-date increase of 41.7%.
This notable outperformance has led to heightened optimism from analysts regarding Fiserv’s outlook. With a consensus rating of “Strong Buy” from 37 analysts, the mean price target of $220.74 suggests a potential rise of 1% from current prices.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
