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Fiserv (FISV) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Fiserv (FISV) closed at $105.67 in the latest trading session, marking a -0.49% move from the prior day. This move lagged the S&P 500's daily loss of 0.39%. At the same time, the Dow lost 0.95%, and the tech-heavy Nasdaq lost 0.83%.

Heading into today, shares of the financial services technology company had gained 1.22% over the past month, outpacing the Business Services sector's loss of 0.36% and the S&P 500's loss of 0.1% in that time.

Investors will be hoping for strength from FISV as it approaches its next earnings release, which is expected to be November 6, 2019. On that day, FISV is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 25.33%. Meanwhile, our latest consensus estimate is calling for revenue of $3.73 billion, up 164.29% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.93 per share and revenue of $13.73 billion. These totals would mark changes of +26.77% and +135.79%, respectively, from last year.

Any recent changes to analyst estimates for FISV should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.89% higher within the past month. FISV is currently a Zacks Rank #2 (Buy).

In terms of valuation, FISV is currently trading at a Forward P/E ratio of 27.06. This represents a premium compared to its industry's average Forward P/E of 25.49.

We can also see that FISV currently has a PEG ratio of 2.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.74 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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