If You Invested $1000 in Fiserv a Decade Ago, This is How Much It'd Be Worth Now

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.What if you'd invested in Fiserv (FI) ten years ago? It may not have been easy to hold on to FI for all that time, but if you did, how much would your investment be worth today?Fiserv's Business In-DepthWith that in mind, let's take a look at Fiserv's main business drivers. Founded in 1984, Fiserv Inc. is headquartered in Brookfield, WI. The company provides financial services technology solutions to over 12,000 clients worldwide in the banking, insurance, healthcare and investment industries. Fiserv serves banks, credit unions, leasing and finance companies, investment management firms, billers, retailers, and merchants. The company has grown its business through developing highly specialized products and services and enhancing them, increasing capabilities through innovation, expanding client base, and acquiring complementary businesses. Core focus areas of Fiserv’s business are portfolio management, client relationship value enhancement, operational effectiveness, capital discipline and innovation. Revenues increased 7.6% year over year to $19.09 billion in 2023. Processing & services revenues, primarily generated from account-and-transaction based fees under contracts (three to five-year terms), represented 82% of revenues in 2023. The company has four reportable segments – Merchant Acceptance (Acceptance) segment, the Financial Technology (Fintech)segment and the Payments and Network (Payments) segment.The businesses in their Acceptance segment offer diverse commerce solutions, serving global merchants. They facilitate secure payment acceptance online or in-person, covering credit, debit, stored-value, and loyalty payments via physical POS or mobile devices like smartphones and tablets.The Fintech segment offers global financial institutions technology solutions for core operations. This includes deposit and loan account processing, ledger management, and more. They also provide digital banking, risk management, consulting, and services for various financial transactions. Some Fintech businesses aid corporate clients in financial process management. These offerings often integrate with services from other segments.The Payments segment serves various sectors globally, offering digital payment processing, card services, network solutions, security products, and non-card digital payment software. Clients span industries, including merchants, financial institutions, and distribution partners across segments.Bottom LineAnyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Fiserv ten years ago, you're likely feeling pretty good about your investment today.According to our calculations, a $1000 investment made in October 2014 would be worth $6,286.12, or a 528.61% gain, as of October 21, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.In comparison, the S&P 500 gained 210.83% and the price of gold went up 109.74% over the same time frame.Analysts are forecasting more upside for FI too. Fiserv's growth is primarily driven by Clover’s strong performance. Management is rightfully optimistic about Clover’s performance, given the notable rise in revenues across the preceding quarters. The company is not shy of making acquisitions to expand its product portfolio and enhance its performance. Its business model has amalgamated recurring revenues and high incremental margins. Investors may be drawn to Fiserv due to its consistent share repurchase program. Therefore, it is not surprising that shares of Fiserv have gained 61.5% in the past year. Meanwhile, Fiserv is part of a highly competitive market, which impacts long-term client relationships. While acquisitions benefit the company's performance, it welcomes integration risks. Decreasing liquidity and currency rate fluctuations are other headwinds. The stock is up 11.08% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2024. The consensus estimate has moved up as well.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fiserv, Inc. (FI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks