Here's Why You Should Retain Fiserv Stock in Your Portfolio Now

Fiserv, Inc. FI has gained 6% in the past year compared with the industry’s 24.2% growth and the Zacks S&P 500 composite’s 10.8% rise.FI’s revenues are anticipated to increase 10.2% and 8.4% year over year in 2025 and 2026, respectively. Earnings are estimated to rise 16.3% in 2025 and 16.8% in 2026.Factors That Augur Well for Fiserv’s SuccessFI’s merchant solutions segment generates recurring revenues through per-transaction fees. The company reported that peak processing volume exceeds 25,000 financial transactions per second, creating a consistent revenue stream from this transactional volume.Additionally, subscription fees are required to operate Clover, which contributes to the steady revenue flow. Processing and service revenues account for nearly 81% of the top line, driven by account and transaction-based fees under multi-year contracts with high renewal rates.Buyouts are the company’s means to expand its product portfolio. In March 2025, Fiserv completed the Payfare acquisition, which complements FI’s embedded financial solutions with card program management and white-label customer application.In the same month, CCV was acquired by the company to boost the Clover platform and operating system’s deployment across Europe while facilitating improved capabilities and innovation to an expansive, combined merchant and partner base.In April 2025, Fiserv acquired Pinch Payments, which provides FI with a platform to manage and optimize the entire payment process that supports flexible service options and speed to market for PayFacs, independent software vendors, business payment service providers, and independent sales organizations and enterprises.FI also entered a definitive agreement to acquire Money Money in the same month. This buyout will expand the company’s services in Brazil, assisting small and medium-sized businesses to access capital to be invested in growth and business maturation.Fiserv’s current ratio at the end of the first quarter of 2025 was 1.1, slightly below the industry average of 1.15. However, the metric increased 3.8% sequentially, driven by a rise in accounts receivable. Crucially, the metric is above 1, indicating an effective short-term liabilities coverage and reassuring investors regarding the company’s liquidity position. Image Source: Zacks Investment Research Risks Faced by FIFiserv operates in a highly competitive market with the industry getting more competitive due to the entry of multiple non-banking companies. This phenomenon puts pressure on FI to innovate and differentiate its offerings continually while maintaining cost efficacy. Therefore, a need to invest in tech and talent to stay ahead in the game is necessary, posing a threat to the company’s ability to balance growth and profitability.The company has never declared dividends and does not have any plan to pay it. Hence, the only way to achieve a return on investment is share price appreciation, which is not guaranteed, given the 28.4% decline in the past six months. Hence, dividend-seeking investors may turn away from this stock and look for a better investment.Fiserv’s Zacks Rank & Stocks to ConsiderThe company has a Zacks Rank #3 (Hold) at present.Some better-ranked stocks from the broader Zacks Business Services sector are Cintas CTAS and Duolingo DUOL,each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Cintas has a long-term earnings growth expectation of 13.2%. CTAS delivered a trailing four-quarter earnings surprise of 7.6%, on average.Duolingo has a long-term earnings growth expectation of 44.9%. DUOL delivered a trailing four-quarter earnings surprise of 22.8%, on average.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cintas Corporation (CTAS): Free Stock Analysis Report Fiserv, Inc. (FI): Free Stock Analysis Report Duolingo, Inc. (DUOL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks