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Milwaukee, Wisconsin-based Fiserv, Inc. (FI) provides payments and financial services technology solutions. Valued at a market cap of $74.4 billion, the company primarily offers merchant acquiring and digital commerce services, mobile payment services, security and fraud protection solutions, stored-value solutions, software-as-a-service, and pay-by-bank solutions.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and Fiserv fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the information technology services industry. The company’s specialty is in integrating technology with financial services, enabling seamless digital payments, real-time money movement, and secure financial transactions at scale.
Despite its notable strength, this payments provider has slipped 42.7% from its 52-week high of $238.59, reached on Mar. 3. Moreover, shares of FI have declined 15.6% over the past three months, considerably underperforming the Global X FinTech ETF’s (FINX) 6.5% return during the same time frame.
In the longer term, FI has fallen 21.4% over the past 52 weeks, significantly underperforming FINX's 24% uptick over the same time period. Moreover, on a YTD basis, shares of FI are down 33.4%, compared to FINX’s 6.4% rise.
To confirm its bearish trend, FI has been trading below its 200-day moving average since late April, and has remained below its 50-day moving average since early March, with slight fluctuations.
Shares of Fiserv tumbled 13.9% on Jul. 23, after its Q2 earnings release. The company’s overall revenue grew 8% year-over-year to $5.5 billion and came in line with the consensus estimates. Moreover, its adjusted EPS of $2.47 advanced 16% from the year-ago quarter, exceeding analyst expectations by 2.5%. However, growth in its Clover payment services platform slowed due to seasonal factors and temporary year-over-year comparisons, sparking investor concerns and driving the stock lower.
Fiserv has also lagged behind its rival, Fidelity National Information Services, Inc. (FIS), which declined 17.5% over the past 52 weeks and 15.6% on a YTD basis.
Despite FI’s recent underperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 37 analysts covering it, and the mean price target of $188.30 suggests a 37.7% premium to its current price levels.
