Stock markets are recovering after the pandemic crisis. Some futures are outright rallying, while others are staying low due to some uncertainties on the market. As the pandemic recedes, lots of countries are lifting restrictions. However, investors fear that this will cause new outbreaks. In some instances, the infections rose again after easing lockdowns.
Furthermore, tensions are escalating between the U.S. and China. The situation could get out of hand quickly, as the countries continue to exchange scalding comments. Asian futures are already trading lower. They suffered the first wave of sell-offs last week.
While there’s a lot to look out for, some stocks are in the position to survive such crises and uncertainties due to their occupation. Fiserv is one such company. Its services are vital for financial organizations, as the company provides financial service technologies for banks, leasing and finance companies, as well as credit unions, and retailers.
Fiserv has been in business since 1984. Additionally, it works with securities brokers and dealers. The company has strong roots and excellent financial reports to go along with it. Fiserv reported over $10 billion in revenues for the fiscal year of 2019, and its first-quarter results are also promising.
Furthermore, the company is on the precipice of a serious change. It recently announced that COO, Frank Bisignano, would succeed the current CEO, Jeffery Yabuki, from July 1. The shift is perceived as positive.
Why did the stock get a strong-buy rating?
The company reported $888 million in net cash for this quarter, while the number was $373 million in the first quarter of 2019. It has enough cash to weather storms for a long time. Fiserv’s revenues skyrocketed by 151% to $3.77 billion, while earnings soared by 2% to 57 cents per share.
Glenn Greene, Oppenheimer’s analyst, set Fiserv’s price target at $130 per share, with a 31.5% gain potential over the year. Seventeen other analysts also gave the stock a strong-buy rating. While the average target price is $122.37, the stock is currently trading at $98.86, which implies a possible 24% profit.
