3 Reasons Why Growth Investors Shouldn't Overlook Fiserv (FI)

Growth Investing and Fiserv's Position - Growth investors focus on stocks with above-average financial growth, which can deliver solid returns but carry higher risk and volatility [1] - Fiserv (FI) is recommended by the Zacks Growth Style Score system, carrying a favorable Growth Score and a top Zacks Rank [2] - Stocks with strong growth features, such as a Growth Score of A or B and a Zacks Rank 1 or 2, consistently outperform the market [3] Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [4] - Fiserv's historical EPS growth rate is 18.8%, and its projected EPS growth for this year is 16.5%, surpassing the industry average of 16.3% [5] Cash Flow Growth - Higher-than-average cash flow growth is crucial for growth-oriented companies, enabling business expansion without relying on external funding [6] - Fiserv's year-over-year cash flow growth is 5.1%, exceeding the industry average of 4.3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 33.5%, significantly higher than the industry average of 12.7% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions are strongly correlated with near-term stock price movements [8] - Fiserv has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 0.2% over the past month [9] Conclusion - Fiserv has earned a Growth Score of B and a Zacks Rank 2 due to its strong earnings estimate revisions and growth metrics [11] - This combination positions Fiserv well for outperformance, making it an attractive option for growth investors [11]