The Stocks have fluctuated during the last few days. There is a lot of uncertainty in the markets. Investors fear that lifting lockdowns will cause new outbreaks, and escalating tensions between the U.S. and China isn’t helping matters either.
While its hard to say how the events will map out in the coming days, some stocks with good potential are currently trading low. Experts recommend them as a worthy addition for investors’ portfolios. It pays to plan for the long-term, after all.
Fiserv is a provider of financial services technology for banks, leasing and finance companies, credit unions, and retailers. This comes along with securities brokers and dealers as well. The company has been in business since 1984.
The company reported over $10 billion in revenues for the 2019 fiscal year. Furthermore, Fiserv recently announced that CEO Jeffery Yabuki would step down as of July 1, and COO Frank Bisignano will succeed him. Its first-quarter results are also promising.
How did Fiserv fare during the coronavirus pandemic?
Despite the coronavirus crisis, the stock’s revenues surged forward by 151% to $3.77 billion, while the earnings rose by 2% to 57 cents per share. The balance sheet was also solid. The company reported $888 million in net cash for the quarter, while the number was $373 million in the first quarter of 2019.
Glenn Greene, Oppenheimer’s analyst, gave the stock a Buy rating. He noted that Fiserv had seen steady weekly volume improvement since late March. Analysts expect significant but bottoming profitability pressure in the second quarter of 2020 with a gradual increase in subsequent quarters.
Greene set the stock price target at $130 per share. In that case of success, shareholders could gain 31.5% over the year. Nineteen other analysts reviewed this stock as well. Seventeen of them gave the stock a strong-buy rating. The average price target is $122.37 and implies a 24% profit from the current trading price of $98.86.
