Trade-Ideas LLC identified

Fiserv

(

FISV

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Fiserv as such a stock due to the following factors:

  • FISV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $123.9 million.
  • FISV has traded 283.1490000000000009094947017729282379150390625 options contracts today.
  • FISV is making at least a new 3-day high.
  • FISV has a PE ratio of 31.
  • FISV is mentioned 0.94 times per day on StockTwits.
  • FISV has not yet been mentioned on StockTwits today.
  • FISV is currently in the upper 20% of its 1-year range.
  • FISV is in the upper 35% of its 20-day range.
  • FISV is in the upper 45% of its 5-day range.
  • FISV is currently trading above yesterday's high.

TheStreet Recommends

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on FISV:

Fiserv, Inc., together with its subsidiaries, provides financial services technology worldwide. FISV has a PE ratio of 31. Currently there are 4 analysts that rate Fiserv a buy, no analysts rate it a sell, and 12 rate it a hold.

The average volume for Fiserv has been 1.3 million shares per day over the past 30 days. Fiserv has a market cap of $20.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.83 and a short float of 1.5% with 2.52 days to cover. Shares are down 0.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Fiserv as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 19.9%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • FISERV INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FISERV INC increased its bottom line by earning $2.98 versus $2.45 in the prior year. This year, the market expects an improvement in earnings ($3.86 versus $2.98).
  • The gross profit margin for FISERV INC is rather high; currently it is at 53.77%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 16.60% trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the IT Services industry and the overall market on the basis of return on equity, FISERV INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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