Fiserv is the IBD Stock Of The Day on the back of steady, double-digit earnings growth. On Tuesday, Fiserv stock dropped back into what is technically a buy range amid the markets broader sell-off.
The financial stock made a new high on Monday and continues to hold above longer-term support levels. Stocks at large have sold off sharply on Trump tariff and inflation fears.
Fiserv's resilience in a turbulent market is a positive sign. That makes the financial technology stock an ideal candidate for watchlists as investors look for potential leaders in the next uptrend.
Around two dozen analysts hiked targets on FI stock after strong earnings and outlook on Feb. 5, FactSet shows. Only one cut.
Fiserv Stock Sinks Back In Buy Range, Near Highs
Shares of the fintech company slid 5.8% in Tuesday's stock market action. Fiserv stock slid back into buy range from a Feb. 5 earnings breakout past 223.23, according to MarketSurge charts.
The relative strength line, the blue line in the chart provided here, made a new high on Monday along with the fintech's shares. A rising RS line means that a stock is outperforming the S&P 500 index.
A 95 RS Rating means Fiserv has outpaced 95% of all stocks in IBD's database over the past year. That is up from 92 one week ago and 89 four weeks ago.
Prior to Tuesday's drop, shares had formed a four-weeks tight pattern around the top of the buy zone, a sign of technical strength in a market under pressure. But FI stock exited Leaderboard on Tuesday after it fell more than 5% and undercut its 21-day line. "While it remains above a 223.23 buy point it did slip slightly below our entry," the IBD markets team said.
Fiserv Earnings Growing By Double Digits
The IBD Stock Checkup tool shows that FI stock holds a Composite Rating of 96 out of 99. IBD's Composite Rating rolls various fundamental and technical metrics into one easy-to-use score.
Fiserv owns an EPS Rating of 93 out of a best-possible 99. That is the fourth highest in the specialty financial services industry group, just behind Tradeweb Markets at 97.
Tradeweb stock was Stock of the Day on Feb. 28. Uncertain interest rates have fueled high bond trading.
On Feb. 5, Fiserv beat earnings views for the fourth quarter of 2024, its ninth quarterly beat in a row.
On a per-share basis, Fiserv earnings increased 15% in the quarter and 17% for the full 2024 year, FactSet shows. Sales rose around 6% for both the final quarter and full year.
In an earnings release, CEO Frank Bisignano touted Fiserv's 39th consecutive year of double-digit EPS growth. He highlighted "high recurring revenue, strong incremental margin and healthy free cash flow."
Steady Eddy stocks are winning investors' favor after a long bull market and given a weak start to 2025.
Fiserv stock has a 21-day ATR of 2.13%. The average true range is a metric available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current, unpredictable market, IBD suggests stocks with ATRs of 3 or below.
Outlook For Fintech Company
For 2025, the company said on Feb. 5 that it expects earnings per share to grow 15%-17%.
Analysts now expect Fiserv earnings to rise 16% this year and a further 17% in 2026. Sales are seen quickening to around 9% growth over both years from 6% last year.
FactSet analyst estimates for fiscal 2025 earnings have ticked higher since December end to a current $10.24 per share. But their estimates for the first quarter have come down since then to $2.09 a share.
Over the past year, Fiserv stock has rallied around 49%, including a 9% gain year to date.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
