3 Reasons to Avoid FISV and 1 Stock to Buy Instead

Fiserv has gotten torched over the last six months - since September 2025, its stock price has dropped 53.2% to $61.90 per share. This may have investors wondering how to approach the situation.

Is now the time to buy Fiserv, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Is Fiserv Not Exciting?

Even though the stock has become cheaper, we're sitting this one out for now. Here are three reasons there are better opportunities than FISV and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

Over the last five years, Fiserv grew its revenue at a mediocre 7.3% compounded annual growth rate. This fell short of our benchmark for the financials sector.

2. Recent EPS Growth Below Our Standards

Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business.

Fiserv’s unimpressive 7% annual EPS growth over the last two years aligns with its revenue trend. This tells us it maintained its per-share profitability as it expanded.

3. Previous Growth Initiatives Haven’t Impressed

Return on equity, or ROE, quantifies bank profitability relative to shareholder equity - an essential capital source for these institutions. Over extended periods, superior ROE performance drives faster shareholder wealth compounding through reinvestment, share repurchases, and dividend growth.

Over the last five years, Fiserv has averaged an ROE of 9.4%, uninspiring for a company operating in a sector where the average shakes out around 10%.

Final Judgment

Fiserv isn’t a terrible business, but it doesn’t pass our bar. Following the recent decline, the stock trades at 7.7× forward P/E (or $61.90 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better investments elsewhere. We’d suggest looking at our favorite semiconductor picks and shovels play.

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