Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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 Value Style Score of B, and has a VGM Score of B. Compared to the Financial Transaction Services industry's P/E of 14.9X, shares of Fiserv are trading at a forward P/E of 21X. FI also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 14.8X, and a Price/Sales ratio of 5.9X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.02 to $10.23 per share. FI has an average earnings surprise of 2.9%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding FI to their portfolios.

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Fiserv, Inc. (FI) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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