Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum 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 climbed 9.3% year over year to $17.74 billion in 2022. Processing & services revenues, primarily generated from account-and-transaction based fees under contracts (three to five-year terms), represented 82% of revenues in 2022. The company has four reportable segments – Merchant Acceptance (Acceptance) segment, the Financial Technology (Fintech)segment and the Payments and Network (Payments) segment.
FI boasts a Momentum Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Fiserv has seen some interesting price action recently; the stock is up 0.4% over the past one week and up 0.8% over the past four weeks. And in the last one-year period, FI has gained 15.4%. As for the stock's trading volume, 2,736,151.50 shares on average were traded over the last 20 days.
A company's earnings performance is important for momentum investors as well. For fiscal 2023, two analysts revised their earnings estimate higher in the last 60 days for FI, while the Zacks Consensus Estimate has increased $0.01 to $7.45 per share. FI also boasts an average earnings surprise of 0.6%.
With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding FI to their portfolios.
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Fiserv, Inc. (FI) : Free Stock Analysis Report
