Is Fiserv Stock Outperforming the Dow?

Milwaukee, Wisconsin-based Fiserv, Inc. (FI) provides payments and financial technology services. It operates through Merchant Acceptance, Financial Technology, and Payments and Network segments. With a market cap of $133.5 billion, Fiserv's operations span the Americas, Europe, the Middle East, Africa, and the Indo-Pacific.

Companies worth $10 billion or more are generally described as “large-cap stock,” Fiserv fits this bill perfectly. Given the company’s extensive clientele and dominance and influence in the fintech space, its valuation above this mark is unsurprising.

Fiserv recently touched its all-time high of $238.59 on Mar. 3 and is currently trading 6.1% below that peak. FI stock is up 3.7% over the past three months, outperforming the Dow Jones Industrials Average’s ($DOWI) 5.5% decline during the same time frame.

Fiserv’s performance looks even more impressive over the longer term. FI stock has soared nearly 29% over the past six months and 49.3% over the past 52 weeks, significantly outperforming Dow’s 3.8% uptick over the past six months and 9.1% gains over the past year.

To confirm the bullish trend, Fiserv has remained consistently above its 200-day moving average over the past year and mostly above its 50-day moving average since early July 2024 with some fluctuations.

Fiserv’s stock prices soared 7.2% after the release of its impressive Q4 results on Feb. 5. Driven by the robust 13% year-over-year surge in organic revenues, the company’s overall topline increased 6.8% year-over-year to $5.3 billion. Furthermore, Fiserv showcased commendable expense discipline by reducing its SG&A expenses, which led to a notable expansion in operating margin and 15.4% year-over-year growth in operating income to $1.7 billion. Meanwhile, its adjusted EPS increased 14.6% year-over-year to $2.51, exceeding the consensus estimates by 1.2%.

Fiserv has also outperformed its peer Broadridge Financial Solutions, Inc.’s (BR) 14.1% gains over the six months and 17.6% returns over the past year.

FI has a consensus “Strong Buy” rating among the 35 analysts covering the stock. Its mean price target of $257.12 indicates a 14.8% premium to current price levels.