Yahoo Finance Why Fiserv (FI) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Fiserv (FI)
Founded in 1984, Fiserv Inc. is headquartered in Brookfield, WI. The company provides financial services technology solutions to over 12,000 clients worldwide in the banking, insurance, healthcare and investment industries. Fiserv serves banks, credit unions, leasing and finance companies, investment management firms, billers, retailers, and merchants. The company has grown its business through developing highly specialized products and services and enhancing them, increasing capabilities through innovation, expanding client base, and acquiring complementary businesses. Core focus areas of Fiserv’s business are portfolio management, client relationship value enhancement, operational effectiveness, capital discipline and innovation. Revenues increased 7.6% year over year to $19.09 billion in 2023. Processing & services revenues, primarily generated from account-and-transaction based fees under contracts (three to five-year terms), represented 82% of revenues in 2023. The company has four reportable segments – Merchant Acceptance (Acceptance) segment, the Financial Technology (Fintech)segment and the Payments and Network (Payments) segment.
FI sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Financial Transaction Services industry's P/E of 14.9X, shares of Fiserv are trading at a forward P/E of 17.2X. FI also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 11.5X, and a Price/Sales ratio of 4.5X.
A company's earnings performance is important for value investors as well. For fiscal 2024, 14 analysts revised their earnings estimate higher in the last 60 days for FI, while the Zacks Consensus Estimate has increased $0.06 to $8.69 per share. FI also holds an average earnings surprise of 2.3%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding FI to their portfolios.
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Fiserv, Inc. (FI) : Free Stock Analysis Report
