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Based in Milwaukee, Wisconsin, Fiserv, Inc. (FI) provides payments and financial services technology services. Valued at a market cap of $102.2 billion, the company offers various solutions primarily to financial institutions, including banks, credit unions, investment management firms, leasing and finance companies, and retailers as well.
Companies worth more than $10 billion or more are generally described as “large-cap stocks” and Fiserv fits right into that category with its market cap exceeding this threshold. The financial service provider is growing through strategic acquisitions and continuous innovation and enhancement in its product portfolio. It is renowned for developing highly specialized products and services, serving thousands of customers in over 100 countries.
Despite a slight pullback from its 52-week high of $175.47, reached on Sept. 3, shares of FI have gained 17.3% over the past three months, outperforming the broader S&P 500 Index’s ($SPX) nearly 6% return over the same time frame.
Longer term, FI stock is up 31.1% on a YTD basis, outpacing SPX’s 17.4% gains. Moreover, shares of Fiserv have soared 41.8% over the past 52 weeks, compared to SPX’s nearly 24% return over the same time frame.
FI has been trading above its 200-day moving average since November last year and has remained mostly above its 50-day moving average during this period despite some fluctuations, indicating a bullish trend.
FI’s outperformance is primarily driven by key products like Clover and Zelle, positive operating leverage, and an attractive valuation relative to its peers. Moreover, the stock gained 2.5% following its mixed Q2 earnings release on Jul. 24 due to a year-over-year increase in revenues and earnings, driven by strong revenue growth in its Product and Merchant solutions segment. The company’s raised full-year earnings guidance further boosted investor confidence.
However, FI has lagged behind its rival, Fidelity National Information Services, Inc.’s (FIS) 48% gain over the past 52 weeks and 37.3% return on a YTD basis.
As the stock outperformed the broader market, analysts remain optimistic about its prospects. FI has a consensus rating of “Strong Buy” from the 36 analysts covering the stock, and the mean price target of $180.62 suggests a premium of just 3.4% to its current levels.
On the date of publication, Sohini Mondal 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.
