Fiserv Hits 52-Week High on Expanding Portfolio, Clientele
Shares of Fiserv, Inc. FISV rallied to a new 52-week high of $140.20, eventually closing a tad lower at $140.19 on Jan 22.
The stock has gained 21.8% year to date, underperforming the industry’s rally of 33.5%. However, we believe that an expanding product portfolio coupled with steady flow of customers will drive top-line growth. This will help the stock rebound in 2018.
Notably, Fiserv beat the Zacks Consensus Estimate in one of the trailing quarters and matched it once, delivering an average positive surprise of 0.09%.
Fiserv carries a Zacks Rank #3 (Hold) and has a market capital of $27.07 billion.
Growing DNA Adoption
Fiserv is witnessing an increase in the adoption of DNA as well as other digital banking solutions. Notably, the number of signed DNA clients totaled 20 after the addition of nine clients to the platform in third-quarter 2017.
The recently announced partnership with Motor City Community Credit Union and Celero will accelerate the growth of DNA account processing platform.
Additionally, the subscriber base for Mobiliti grew over 20% to 6.4 million in the quarter.
Expanding Product Portfolio
Fiserv’s expanding product portfolio is a positive. The company launched products namely Prologue Credit Loss Manager, Instant Issue Advantage and Integrator Advance in the last quarter, which led to a steady flow of customers.
Further, the company’s investment in digital-oriented technologies is improving its competitiveness in the market.
Additionally, acquisitions of Monitise, PCLender and Dovetail Group are expected to increase its market share in the long haul.
Stocks to Consider
Envestnet, Inc ENV, IHS Markit Ltd. INFO and Thomson Reuters Corp TRI are some better-ranked stocks in the broader business sector. Envestnet sports a Zacks Rank #1 (Strong Buy) while IHS Markit and Thomson Reuters carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Envestnet, IHS Markit and Thomson Reuters Corp is estimated to be 15%, 11.71% and 8.33%, respectively.
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