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Fiserv (FISV) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Fiserv (FISV) closed at $102.46 in the latest trading session, marking a -0.05% move from the prior day. This change lagged the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 1.01%.

Coming into today, shares of the financial services technology company had lost 2.44% in the past month. In that same time, the Business Services sector lost 0.65%, while the S&P 500 gained 1.38%.

FISV will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. In that report, analysts expect FISV to post earnings of $0.99 per share. This would mark year-over-year growth of 32%. Our most recent consensus estimate is calling for quarterly revenue of $3.79 billion, up 168.26% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.72 per share and revenue of $14.27 billion. These totals would mark changes of +20% and +145.12%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for FISV. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.81% lower. FISV currently has a Zacks Rank of #3 (Hold).

Investors should also note FISV's current valuation metrics, including its Forward P/E ratio of 27.56. This valuation marks a premium compared to its industry's average Forward P/E of 25.09.

Also, we should mention that FISV has a PEG ratio of 2.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.75 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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