​Fiserv, Inc. (NASDAQ:FISV) is one of the Most Undervalued Fintech Stocks to Buy Now. On January 12, Bryan Bergin from TD Cowen reiterated a Hold rating on the stock and lowered the firm’s price target from $80 to $77. Earlier, on January 8, Darrin Peller from Wolfe Research also reiterated a Hold rating on the stock without disclosing any price targets. ​TD Cowen noted that the adjusted price target for Fiserv, Inc. (NASDAQ:FISV) reflects the firm’s view of the payments group as part of their Q4 preview ...

Core Viewpoint - The investment strategies have shown positive returns for the year, with a focus on long-term performance over short-term results [2][5]. Performance Summary - Large Cap Composite (Gross) returned -1.4% QTD, 8.5% YTD, and 10.4% annualized since inception [3][22]. - Small Cap Composite (Gross) returned 3.4% QTD, 10.3% YTD, and 8.3% annualized since inception [3][31]. - Focus Composite (Gross) returned 0.2% QTD, 7.5% YTD, and 14.3% annualized since inception [3][36]. - All Cap Composite (Gross) returned 1.5% QTD, 11.5% YTD, and 11.1% annualized since inception [3][53]. Market Environment - The current market resembles the late 1990s, with concerns about overvaluation and a focus on AI-related stocks [5][6][7]. - AI is seen as a transformative technology, similar to the Internet, but caution is advised regarding valuations [7][9]. Investment Strategy - The company emphasizes buying only those companies with stable values, often waiting for them to become discounted enough for investment [10][12]. - The portfolio has shifted towards more healthcare and insurance-related businesses, with a focus on smaller companies outside the top 10 largest market capitalizations [11][12]. Notable Holdings - Medpace (MEDP) has shown significant growth, with a stock price increase of over 73% for the year, driven by strong free cash flow and share repurchases [13][14]. - Ryan Specialty Holdings Inc. is highlighted for its robust growth and stable margins, despite facing a short-term pricing cycle [24][25][38]. - TransUnion is recognized for its strong operating margins and successful diversification beyond credit reports [26][38]. Performance Contributors and Detractors - Alphabet Inc. and Salesforce Inc. were significant contributors to performance, while CoStar Group and Microsoft Corporation were notable detractors [37][46]. - Fiserv Inc. was a material detractor due to downward guidance and strategic shifts in its business model [30][46]. Market Trends - The small-cap sector has lagged behind large-cap returns, presenting potential opportunities for investment as it is often overlooked [15]. - The dominance of large-cap stocks in market returns continues, with the top 10 S&P 500 stocks accounting for over 50% of its return in 2025 [16].

Summary of Key Points Core Viewpoint - B. Riley has lowered the price target for Fiserv (FISV) from $105 to $76 while maintaining a Neutral rating on the shares, reflecting a subdued outlook for 2026 due to necessary investments in technology and operations to enhance competitive positioning [1] Group 1: Price Target and Rating - The price target for Fiserv has been reduced to $76 from $105 [1] - B. Riley maintains a Neutral rating on Fiserv shares [1] Group 2: Financial Outlook - The firm's estimates have been adjusted to account for Fiserv's subdued outlook for 2026 [1] - Fiserv is expected to grow below industry averages in terms of operating margins [1] Group 3: Investment Needs - Necessary investments in technology and operations are highlighted as critical for improving Fiserv's competitive position [1]

Group 1: Market Overview - At the start of 2026, the stock market shows signs of instability, with concerns about the potential bubble in the artificial intelligence sector, yet the S&P 500 has reached unprecedented highs [2] - Despite market fears, there are opportunities for investors to identify undervalued stocks that could yield significant returns in the mid to long-term [2] Group 2: Rocket Pharmaceuticals (RCKT) - Rocket Pharmaceuticals is a clinical-stage gene therapy developer focused on rare diseases, with shares dropping from approximately $6.59 to about $2.50 due to a trial-related issue, currently priced at $3.80 [3] - The stock has seen a mild positive trend with an 8% year-to-date rally, and the company is advancing its gene therapy programs, notably in Phase 2 trials for Danon disease [5] - The average Wall Street 12-month price target for RCKT is $8.63, indicating a potential upside of 127% by the end of 2026 [6] Group 3: Fiserv (FISV) - Fiserv is a well-established company in the global payments and financial infrastructure sector, with a significant drop of 40% in stock price due to a poor earnings report, currently priced at $66.79 [8] - Analysts suggest FISV is undervalued based on fundamentals, with expectations of at least a 40% rally in 2026 as the digital payments sector grows [10] - Congressional trading patterns show Representative Gilbert Cisneros purchased FISV shares, highlighting potential investor confidence [11] Group 4: Intel (INTC) - Intel's stock price is currently at $47.29, significantly lower than competitors Nvidia and AMD, despite gaining ground through 2025 [12] - The company is strategically important for the U.S. and is on a path to potentially become the second-largest microchip foundry, surpassing Samsung [14] - Intel's significance is underscored by the geopolitical risks associated with semiconductor production concentrated in Taiwan [15]

Group 1: Oakmark Fund Performance - Oakmark Fund outperformed the S&P 500 Index in Q4 2025, returning 4.78% compared to the index's 2.66% [1] - The fund aims to deliver capital appreciation by investing in diverse large-cap US companies [1] Group 2: Fiserv, Inc. Overview - Fiserv, Inc. (NASDAQ:FISV) is a leading financial technology company providing payment and fintech services [2] - Fiserv's stock price closed at $66.75 per share on January 12, 2026, with a market capitalization of $36.285 billion [2] Group 3: Fiserv, Inc. Performance and Outlook - Fiserv was the top detractor for Oakmark Fund in Q4 2025, with a one-month return of -2.31% and a 52-week loss of 67.32% [2][3] - The company faced a sharp decline in stock price following disappointing Q3 earnings and a strategic review indicating prior revenue growth targets were unachievable [3] - The new management team anticipates mid single-digit organic revenue growth and double-digit EPS growth on a normalized basis, suggesting an attractive risk/reward scenario with shares trading at a single-digit multiple of current EPS [3] Group 4: Hedge Fund Interest in Fiserv, Inc. - Fiserv, Inc. was held by 83 hedge fund portfolios at the end of Q3 2025, down from 94 in the previous quarter [4] - While Fiserv is recognized for its potential, certain AI stocks are considered to offer greater upside potential and less downside risk [4]

Core Insights - Health and wellness providers using Clover devices can now offer CareCredit's patient financing solution, enhancing payment options for patients [2][4] - The integration allows providers to accept CareCredit payments and facilitate new applications at the point of sale, streamlining the payment process [2][3] - This expansion adds 40,000 health providers to CareCredit's network, increasing the total to 42,000 providers [4] Company Integration - The partnership between Synchrony and Fiserv's Clover aims to improve operational efficiency and enhance the patient experience [3][4] - CareCredit becomes the first patient financing solution available on the Clover App Market, indicating a significant competitive advantage [3] Market Trends - There is a growing consumer preference for platforms that simplify the purchasing process, making it faster and more personalized [5] - Financial products integrated into merchant ecosystems create a seamless customer journey, aligning with consumer expectations [6] Future Outlook - Fiserv is focused on expanding the capabilities of the Clover platform beyond just point-of-sale transactions, indicating a strategic shift towards a comprehensive business operating platform [7]

Core Insights - The article emphasizes the importance of buying businesses for less than their intrinsic value, with a focus on growth as a key component of that value [1] - It highlights the rarity of true mispricings in high-quality businesses, which typically occur only a few times a year [1] - The author advocates for analyzing special situations like spin-offs and mergers & acquisitions, where market complexities can create significant margins of safety [1] Investment Philosophy - The investment approach is influenced by the belief that price paid is the only variable an investor can control [1] - The author recognizes that markets are generally efficient, which necessitates patience in identifying investment opportunities [1] - There is a focus on companies with wide moats that tend to deliver fewer negative surprises over the long term [1] Market Environment - The author has extensive experience in a volatile market environment, specifically in Argentina, which has shaped their understanding of risk [1] - Navigating bear markets and economic shifts has provided insights into the challenges faced by investors who do not conduct thorough research [1] - The belief is expressed that individual investors can have significant advantages over institutional investors, as noted by Peter Lynch [1]

Group 1 - Fiserv, Inc. (NASDAQ:FISV) announced a strategic collaboration with Microsoft to enhance innovation by integrating AI into its development platforms and empowering its global workforce with AI tools [1][2] - The collaboration aims to boost internal productivity and deliver AI-driven solutions that create greater value for clients, including financial institutions, businesses, and consumers [1] - Fiserv is also increasing the use of Microsoft Foundry, an Azure-powered AI platform, to build, customize, deploy, and manage AI applications, thereby bringing intelligent capabilities to market [3] Group 2 - The deployment of Microsoft 365 Copilot throughout Fiserv's global workforce will provide employees with advanced AI tools to improve productivity, accelerate decision-making, and enhance work quality [2] - Fiserv is recognized as a global leader in payments and financial technology, positioning itself to leverage AI advancements for competitive advantage [3]

Core Viewpoint - The decline in Fiserv (FISV) following disappointing Q3 2025 guidance presents an opportunity for investors to consider initiating new positions, as current stock levels are influenced by market momentum rather than fundamentals [1]. Group 1: Company Analysis - Fiserv's Q3 2025 guidance is characterized as dismal, which has led to a significant drop in its stock price [1]. - The current market conditions suggest that the stock's performance is more reflective of market trends rather than the company's underlying financial health [1]. Group 2: Investment Strategy - The situation with Fiserv indicates a potential for fresh investment opportunities, particularly for those looking to capitalize on market fluctuations [1]. - The analysis emphasizes a long-term perspective on value creation, suggesting that despite short-term challenges, there may be favorable conditions for investment in Fiserv [1].

Group 1 - The decline in Fiserv (FISV) following a poor Q3 2025 guidance presents an opportunity for investors to consider initiating new positions [1] - Current stock levels are influenced more by market momentum rather than fundamental performance [1] - The analysis emphasizes the importance of understanding macroeconomic trends and corporate earnings for investment decisions [1]