U.S. Markets open in 41 mins

Fiserv (FISV) Gains But Lags Market: What You Should Know

Zacks Equity Research

Fiserv (FISV) closed at $105.68 in the latest trading session, marking a +0.51% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.34%.

Coming into today, shares of the financial services technology company had gained 1.2% in the past month. In that same time, the Business Services sector lost 0.88%, while the S&P 500 lost 1.17%.

Investors will be hoping for strength from FISV as it approaches its next earnings release. The company is expected to report EPS of $0.91, up 21.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.79 billion, up 168.51% from the prior-year quarter.

FISV's full-year Zacks Consensus Estimates are calling for earnings of $3.83 per share and revenue of $13.35 billion. These results would represent year-over-year changes of +23.55% and +129.2%, respectively.

It is also important to note the recent changes to analyst estimates for FISV. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. FISV is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, FISV is holding a Forward P/E ratio of 27.45. For comparison, its industry has an average Forward P/E of 24.61, which means FISV is trading at a premium to the group.

Also, we should mention that FISV has a PEG ratio of 2.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services was holding an average PEG ratio of 1.59 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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
 
Fiserv, Inc. (FISV) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research