Partnering on cloud computing and artificial intelligence with the likes of Microsoft and Google-parent Alphabet, Fiserv provides payments and financial services to clients worldwide. And while both Microsoft and Google have retreated below their 50-day moving averages, shares of Fiserv stock remain in buy range, bucking troubles in the market indexes.
The Fortune 500 and S&P 500 member earns a spot on Stock Spotlight and IBD Leaderboard. In a sign of demand, Fiserv also joins Alphabet on the latest list of new buys by the best mutual funds.
Fiserv In Demand Amid Solid And Steady Growth
Headquartered in Milwaukee, Fiserv provides services to clients across the financial services sector, including banks, insurers and retailers. While teaming up with Microsoft and Google, Fiserv uses AI to enhance client experiences, provide insight on transactions and spending habits, and fight fraud.
On Feb. 5, Fiserv reported fourth-quarter results, delivering earnings growth of 15% to $2.51 per share. That continued the fintech's track record of strong and steady growth now ranging from 13% to 20% over the last eight quarters.
For 2024, Fiserv posted a 16% increase in earnings to $8.80 per share. For 2025, analysts forecast 16% growth to $10.24 per share.
On the sales front, growth has come in at 7% in each of the last four quarters. In the fourth quarter, Fiserv generated more than $5.25 billion in revenue.
With a 96 Composite Rating out a highest-possible 99, Fiserv ranks among its top-rated peers in the specialty financial services group.
Fiserv Stock Holds Tough In Rocky Market
In addition to joining Alphabet on the latest list of new buys by top funds, Fiserv also sports a 1.4 up/down volume ratio and a B- Accumulation/Distribution Rating. Plus, an impressive 210 funds with an A+ rating from Investor's Business Daily have a position in Fiserv stock.
That demand has Fiserv holding strong in buy range following its earlier breakout on earnings. The stock gapped up past a 223.23 buy point in a third-stage cup pattern on Feb. 5.
The buy range extends up to 5% past the initial entry. For Fiserv, that is up to 234.39. The stock came off early lows on Monday to close at 232.11
Meanwhile, Microsoft and Alphabet have dropped and their relative strength lines have turned downward. After breaking out in December and notching a record high on Feb. 4, Google stock is now fighting to hold its initial 182.49 buy point.
After failing to hold its 50-day benchmark, Microsoft is now trying to regroup by building a new base. The silver lining is that the new setup is a first-stage base since Microsoft stock undercut the low in its prior pattern. If the Nasdaq can find its footing, Microsoft's resetting of its base count could spark a renewed climb.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
