Fiserv (FISV) Offering Possible 10.5% Return Over the Next 20 Calendar Days

Fiserv's most recent trend suggests a bullish bias. One trading opportunity on Fiserv is a Bull Put Spread using a strike $115.00 short put and a strike $105.00 long put offers a potential 10.5% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $115.00 by expiration. The full premium credit of $0.95 would be kept by the premium seller. The risk of $9.05 would be incurred if the stock dropped below the $105.00 long put strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Fiserv is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Fiserv is bullish.

The RSI indicator is at 62.69 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Fiserv

Fiserv (FISV) Reports Next Week: Wall Street Expects Earnings Growth
Tue, 28 Jan 2020 17:31:05 +0000
Fiserv (FISV) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

When blockchain arrives in fintech, old-line payment processors will feel the pain
Sat, 25 Jan 2020 19:03:00 +0000
Blockchain will dramatically lower transaction costs for retailers, which paid a collective $108 billion last year.

Expect Square to Remain Stuck in Neutral
Fri, 24 Jan 2020 15:33:40 +0000
While the market reaches new highs, Square (NYSE:SQ) stock remains in neutral. Square does trade at a high valuation. But with analysts predicting growth deceleration since August, investors have been less confident in giving this stock an even higher valuation.Source: Jonathan Weiss / Shutterstock.com Is Mr. Market right in discounting Square's future prospects? Is Square a software-as-a-service pioneer like Shopify (NYSE:SHOP)? Or is the company more like PayPal (NASDAQ:PYPL) or legacy payment processors like Fiserv (NASDAQ:FISV), Visa (NYSE:V) and Mastercard (NYSE:MA)? Back in October, a Barron's article made the case for the latter. In other words, implying more downside for SQ stock.Add in increased competition, and Square does not look like a great opportunity. So, what's the verdict? Let's dive in, and see why SQ stock is most likely going to be stuck in neutral in 2020.InvestorPlace – Stock Market News, Stock Advice & Trading Tips What Does Fintech Consolidation Mean for SQ Stock?I've before discussed how the competition's heating up for Square. Square's merchant platform faces growing competition from established players like Fiserv. In retail peer-to-peer payments, Square's Cash App goes toe-to-toe with PayPal's Venmo. Square can still expand its merchant and consumer businesses. But customer acquisition costs could skyrocket as the market becomes crowded. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy Square has its work cut out for it. Yet, the company could be an ideal bolt-on acquisition for a larger financial services company. Potential acquirers like Visa or Mastercard come to mind. InvestorPlace contributor Dana Blankenhorn expressed similar sentiments in his Dec. 30 SQ stock analysis. Blankenhorn argued that strategic buyers could pay a 33% premium to its then-trading price of $63.50 per share. In other words, $84.45 per share.Yet, this article came out before Visa's announced acquisition of Plaid. Plaid provides the back-end technology that allows fintech apps like Coinbase and Robinhood to link with your bank account. Why is this recent deal relevant to SQ stock? It could mean Square isn't the type of company deep-pocked payment companies are looking to buy.By owning the key gatekeeper between banks and fintech startups, Visa may not need to buy a company like Square to stay relevant. If businesses and customers pivot toward fintech startups in lieu of legacy payment processors, Visa can still win by owning Plaid. Visa could also leverage its ownership of Plaid to compete with Plaid's existing clients.Square was in talks to buy Plaid in 2018. Unfortunately, they couldn't get their hands on this hot asset. Doing so would've given them in edge against both startup rivals, as well as legacy payment providers. Square Needs Time to Grow Into Its ValuationSQ stock currently trades for 88.7 times estimated 2019 earnings, and 71.5 times estimated 2020 earnings. In contrast, payment rivals PayPal trades for 38 times 2019 earnings, and 33.3 times 2020 earnings. Their other main rival, Fiserv, trades for 30 times 2019 earnings, and 23.6 times projected 2020 earnings. Square's faster growth rate does justify a valuation premium. But with risks growth could decelerate, paying 71.5 forward earnings doesn't look like a smart move.Could Square grow into its valuation? It could. But even Square's high projected earnings growth of 23% implies it would take a while. In the meantime, investors may start giving Square a lower earnings multiple, sending shares to lower levels.So what's the solution? As InvestorPlace's Josh Enomoto recently wrote, the company's Square Capital lending business could move the needle long term. But investors are well aware of Square's intent to become a fintech "financial supermarket." Square could win big with this aggressive growth strategy.But looking at the competitive environment, it seems Square is sandwiched in the middle. On one hand, you have new startups that could outfox Square via innovation. On the other hand, deep-pocketed rivals to use scale to hamper Square's growth plans.That's not to say that Square will be muscled out of business. Yet, growth above expectations seems less likely. With this in mind, it seems SQ stock is more likely to come down valuation-wise than go higher thanks to expectation-exceeding growth. Bottom Line: SQ Stock Could Stay in NeutralSquare has much potential to further disrupt financial services. However, I do not believe the company's valuation premium to payment peers like PayPal is sustainable. If February's earnings call indicates further growth deceleration, SQ stock could fall to a valuation closer to that of peers.Square's move to become a fintech "financial supermarket" further cements the argument that the company is not comparable to a SaaS name like Shopify. Square deserves a growth premium to PayPal, Visa and others, but not a forward price-to-earnings ratio of 71.5.So what's the call? Stay away from SQ stock. The company could surprise come February. But chances are Square shares tread water at best in the coming year.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Expect Square to Remain Stuck in Neutral appeared first on InvestorPlace.

Fiserv Investment Solutions, Inc. — Moody's assigns B2 CFR to Fiserv Investment Solutions in connection with the planned carveout and recapitalization; outlook stable
Thu, 23 Jan 2020 01:42:09 +0000
Moody's Investors Service (“Moody's”) assigned a B2 Corporate Family Rating (CFR) and B2-PD Probability of Default Rating (PDR) to Fiserv Investment Solutions, Inc. (Fiserv IS) in connection with the company's planned carveout from Fiserv, Inc. (Fiserv) and formation of a standalone entity owned by Motive Partners and its investor group including limited partners and Cannae Holdings (combined 60% ownership) and Fiserv (40%) in a transaction valued at approximately $800 million. The company's proposed $345 million first lien credit facility ($40 million revolver and $305 million term loan) was assigned a rating of B2.

5 Guru Stocks Outperforming the Market
Wed, 22 Jan 2020 19:22:22 +0000
Sony tops the list Continue reading…

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