Here's Why Fiserv (FI) is a Strong Growth Stock

Zacks
02-12

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why This 1 Growth Stock Should Be On Your Watchlist

For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.

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 increased 7.6% year over year to $19.09 billion in 2023. Processing & services revenues, primarily generated from account-and-transaction based fees under contracts (three to five-year terms), represented 82% of revenues in 2023. The company has four reportable segments – Merchant Acceptance (Acceptance) segment, the Financial Technology (Fintech)segment and the Payments and Network (Payments) segment.

FI sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of B, and has a VGM Score of B. Earnings and sales are forecasted to increase 16.3% and 9.1% year-over-year, respectively.

Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.03 to $10.23 per share. FI boasts an average earnings surprise of 2.9%.

Looking at cash flow, Fiserv is expected to report cash flow growth of 6% this year; FI has generated cash flow growth of 12.7% over the past three to five years.

Investors should take the time to consider FI for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.

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