USA - Should you invest in Fiserv after paycheck deposits partnership with PayPal?
On Wednesday, Fiserv Inc. ( NASDAQ:FISV ) shares edged 1.18% higher after announcing its partnership with PayPal Inc. ( NASDAQ:PYPL ) for paycheck deposits. The company’s Carat omnichannel commerce ecosystem is expanding its digital products to include PayPal payments after crossing $1 billion monthly digital payouts executed via exclusive payouts and direct bank connections.
Nandan Sheth, head of Carat and Digital Commerce at Fiserv said :
With the addition of payouts to PayPal and Venmo accounts via our Carat ecosystem, businesses can benefit from enhanced visibility of their brand via a logo, tagline or customized message in Venmo’s social payments platform.
As a result, Fiserv clients will be able to improve the customer experience at scale through a single API.
The system will allow businesses to make large payments while also improving brand recognition through Venmo. Therefore, Fiserv appears to be tapping into a high growth segment of the online payments market, boosting its long-term growth prospects.
Should you invest in Fiserv shares in Q3 2021?
From a valuation perspective, the Fiserv stock seems steeply priced at a P/E ratio of 67.42. However, its forward P/E ratio of 17.34 is significantly lower, making it attractive to value investors.
Furthermore, although analysts expect earnings per share to fall by 18% this year, the company’s perspective annual growth rate of nearly 19% over the next five years makes the stock a compelling option for growth investors.
Fiserv shares have also pulled back nearly 10% since 26th April, creating a perfect opportunity to buy ahead of the exciting growth.
Technical overview: Fiserv stock price predictions for August 2021
Technically, Fiserv shares seem to be trading within an ascending channel formation following a sharp decline at the start of August. However, the stock still trades several levels below the current all-time highs of 127.34 reached in April.
Therefore, investors can target extended rebound profits at approximately $116.54 or higher at $119.14. The key support levels are $111.59 and $108.32.
FISV shares closed at $114.26 on Wednesday.
Bottom line: why buy Fiserv shares now?
In summary, although Fiserv shares seem to be trading at a steep price-earnings ratio, the forward P/E looks attractive. Furthermore, the stock price is yet to reach overbought conditions in the 14-day RSI, leaving more room for upward movement. Therefore, it may not be too late to invest in FISV shares.
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