Stock of the Day

October 29, 2024

Fiserv (FI)

$138.07
-$1.93 (-1.4%)
Market Cap: $75.07B

About Fiserv

Fiserv, Inc., together with its subsidiaries, provides payments and financial services technology services in the United States, Europe, the Middle East and Africa, Latin America, the Asia-Pacific, and internationally. It operates through Merchant Acceptance, Financial Technology, and Payments and Network segments. The Merchant Acceptance segment provides merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Clover, a cloud based POS and integrated commerce operating system for small and mid-sized businesses and independent software vendors; and Carat, an integrated operating system for large businesses. This segment distributes through various channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions, and other strategic partners in the form of joint venture alliances, revenue sharing alliances, and referral agreement. The Financial Technology segment offers customer deposit and loan accounts, as well as manages an institution's general ledger and central information files. This segment also provides digital banking, financial and risk management, professional services and consulting, check processing, and other products and services. The Payments and Network segment offers card transactions, such as debit, credit, and prepaid card processing and services; funds access, debit payments, cardless ATM access, and surcharge-free ATM network; security and fraud protection products; card production; print services; and various network services, as well as non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products. It serves merchants, banks, credit unions, other financial institutions, and corporate clients. Fiserv, Inc. was incorporated in 1984 and is headquartered in Milwaukee, Wisconsin.

Fiserv Bull Case

Here are some ways that investors could benefit from investing in Fiserv, Inc.:

  • The current stock price is around $138.93, which may present a buying opportunity for investors looking for value in the market.
  • Fiserv, Inc. reported a quarterly revenue increase of 8.0% year-over-year, indicating strong growth potential and demand for its financial services technology.
  • The company has a solid earnings per share (EPS) of $2.47, surpassing analysts' expectations, which reflects its profitability and operational efficiency.
  • With a market capitalization of approximately $75.52 billion, Fiserv, Inc. is a significant player in the financial services sector, providing stability and credibility.
  • Analysts have a "Moderate Buy" rating on the stock, with an average price target of $207.08, suggesting potential for price appreciation in the near future.

Fiserv Bear Case

Investors should be bearish about investing in Fiserv, Inc. for these reasons:

  • The stock has experienced a significant decline from its 52-week high of $238.59, which may indicate volatility and risk for potential investors.
  • Insider trading activity shows recent sales by executives, which could signal a lack of confidence in the stock's short-term performance.
  • The company has a debt-to-equity ratio of 1.09, suggesting a relatively high level of debt compared to equity, which could pose risks in economic downturns.
  • Recent target price reductions by analysts, including a drop from $250.00 to $200.00, may reflect concerns about future growth prospects.
  • With a P/E ratio of 23.19, the stock may be considered overvalued compared to its earnings, which could deter value-focused investors.

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