Financial Technology Growth Sends Fiserv Shares Up

Fiserv provides financial services technology through three primary segments (merchant acceptance, financial technology, payments and network). The company’s customers include financial institutions, merchants, and card issuers. It also helps facilitate electronic payment transactions, which it sees as a growth driver.

As for earnings, FI’s third quarter report showed a strong quarter with adjusted per-share earnings of $2.30, which is a gain of 17% year-over-year. Clover, a key product in FI’s merchant segment, brought in 28% more revenue. The company also repurchased $1.3 billion worth of shares.

It’s no wonder FI shares are up 49% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Fiserv

Institutional volumes reveal plenty. In the last year, FI has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in FI shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of financials names are under accumulation right now. But there’s a powerful fundamental story happening with Fiserv.

Fiserv Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, FI has had strong sales and earnings growth:

• 3-year sales growth rate (+8.7%)
• 3-year EPS growth rate (+54.7%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +16.2%.

Now it makes sense why the stock has been powering to new heights. FI has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Fiserv has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when FI was a top pick…making the stock gain ground:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Fiserv Price Prediction

The FI rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in FI at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.