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Fiserv, Inc. (FI), headquartered in Milwaukee, Wisconsin, is a global leader in financial technology and payment solutions. With a market cap of $125.7 billion, this industry giant drives innovation in the financial services sector, offering cutting-edge technologies and services that empower businesses and consumers worldwide to manage payments and financial operations seamlessly.
Companies worth $10 billion or more are described as “large-cap stocks,” and Fiserv fits this category. With a presence in over 100 countries and a comprehensive suite of financial technology solutions, including payment processing, point-of-sale systems, and digital banking platforms, Fiserv has solidified its position as a cornerstone of the financial services and payments industry.
Fiserv is currently trading 2.1% below its 52-week high of $223.23, reached on Nov. 26. Shares of Fiserv gained 25.2% over the three months, significantly outperforming the broader Nasdaq Composite’s ($NASX) 9.5% gain during the same time frame.
Over the long term, FI stock has climbed 64.5% on a YTD basis and rallied 67.3% over the past 52 weeks. By comparison, the NASX has risen 29.3% in 2024 and 35.6% over the past year.
To confirm the recent bullish trend, FI has traded above its 50-day and 200-day moving averages over the past year, with a few fluctuations.
Fiserv's shares climbed 1.3% following the release of its Q3 earnings on Oct. 22, which exceeded market expectations. The company delivered impressive organic revenue growth of 15% in the quarter, driven by a robust 24% increase in the Merchant Solutions segment and a solid 6% growth in the Financial Solutions segment. Adjusted earnings per share rose 17% year-over-year to $2.30 in Q3.
Reflecting its strong performance and momentum, Fiserv raised its full-year 2024 guidance, now projecting organic revenue growth between 16% and 17% and an adjusted EPS between $8.73 and $8.80.
Fiserv's competitor, Fidelity National Information Services, Inc. (FIS), has shown weaker performance compared to Fiserv over the past year. Over the past 52 weeks, FIS has recorded a 42.1% gain and is up 41.7% on a YTD basis.
Fiserv's recent outperformance compared to the broader sector has bolstered analysts' optimism about its outlook. The stock has a consensus rating of “Strong Buy” from 37 analysts in coverage, and the mean price target of $220.74 hints at a premium of 1% from the current price levels.
