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Fiserv, Inc. (FI), headquartered in Milwaukee, Wisconsin, has been a pivotal player in global payments and financial services technology since its inception in 1984. Operating across diverse segments like Merchant Acceptance, Financial Technology, and Payments and Network, Fiserv provides various solutions from merchant acquiring and digital commerce to financial management and risk mitigation. With a focus on innovation and security, Fiserv serves a broad clientele, including banks, merchants, and corporations, reinforcing its role in shaping the future of digital payments and banking solutions worldwide. Its market cap currently stands at $87.5 billion.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Fiserv fits right into that category, with its market cap surpassing this mark, reflecting its substantial size and influence in the industry. Fiserv's client-centric innovations and robust financial standing cement its role as a formidable force in the industry.
Fiserv has slipped 6.6% from its 52-week high of $159.99, achieved on March 28. FI stock has declined 1.8% over the past three months, substantially underperforming the Information Technology ETF Vanguard’s (VGT) 13.7% gains over the same time frame.
In the longer term, shares of Fiserv have surged 12.5% on a YTD basis and jumped 24.6% over the past 52 weeks, underperforming VGT's 21.7% returns in 2024 and 34% gains over the past year.
Nevertheless, FI has traded consistently above its 200-day moving average since early November. Even though FI remained mostly above the 50-day moving average, it has dipped below it since mid-April.
Over the past year, Fiserv has navigated both highs and lows. On the upside, revenue growth and improved adjusted operating margins at 35.8% have caught investor attention. However, the journey hasn't been smooth. Intense competition in the fintech space and market dynamics, coupled with high interest rates, have contributed to recent declines.
Fiserv's competitor, Global Payments Inc. (GPN), is significantly underperforming FI. Shares of Global Payments plunged 8.4% and dipped 27.4% on a YTD basis, sharply contrasting FI's double-digit returns over the same time frame.
Analysts remain bullish about FI’s prospects. The stock has a consensus “Strong Buy” rating from the 35 analysts covering it, and a mean target of $170.53 suggests an upside potential of 14.1% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
