Should I Buy Fiserv (FI)? Finance YouTuber Analysis

The YouTuber refers to Michael Burry's reported strategy of buying 'hated, beaten-down value names,' including Fiserv. This suggests that Fiserv, despite being out of favor with the broader market, is fundamentally sound and currently trading at an attractive valuation, making it a potential long-term investment.

“At the same time, he's been reported to be buying the hated, beaten-down value names, Adobe, PayPal, Fiserv...”

The YouTuber suggests cutting losses on Fiserv for tax-loss harvesting purposes, following a 47% drop due to a lower growth outlook and management shakeup. While he believes the company is making smart long-term strategic decisions to transition into stablecoins and is now cheap at 3.3x price-to-sales, he acknowledges the rebound may take longer than most investors are willing to wait.

“I would take I would cut losses here for that tax loss harvesting.”

The YouTuber believes Fiserv will be a strong rebound story, citing its attractive valuation at 12 times price-to-earnings, which is a third of its historical average. The major upside catalyst is the company's move into stablecoins, which could unlock significant value by cutting costs and speeding up transactions for its extensive network of banks and institutional clients.

“I continue to believe that this one will be one of the best rebound stories over the next year.”

The YouTuber previously recommended Fiserv at $172, preferring it over Circle due to its potential in the stablecoin era. However, with the stock now at $124-$125, he still sees it as an early mover but explicitly states he would now prefer ETHA, Coinbase, and Robinhood over Fiserv in this theme.

“I did recommend it at about $172 in that June 30th uh video, preferring it over circle because I think it's going to have a big upside in that stable coin era. It is now at $124, $225. Okay. So, I think it still makes it into that an early mover into the stable coin era. I think it does benefit from that, but I would prefer the ETHA.”

The YouTuber suggests Fiserv as an 'undiscovered play' on the coming stablecoin era. Despite a recent sell-off, the stock could have a 40% upside to analyst targets, indicating a potential rebound and long-term growth tied to the stablecoin market.

“I've highlighted Fiserv ticker FI on the channel before as one of the undiscovered plays on that coming stable coin era.”

The YouTuber sees Fiserv as an 'undiscovered opportunity' in the stablecoin theme, despite its recent fall. Fiserv possesses the necessary infrastructure and banking connections to make stablecoins work, with plans to launch its own platform and coin. Its current price-to-sales ratio of 3.8x represents a 32% discount to its average, suggesting significant upside potential.

“And within that stable coin theme, I still like shares of Fiser, ticker FI, as the undiscovered opportunity, even though it's fallen lately.”

The YouTuber recommends Fiserve due to its strong position in the upcoming stablecoin and tokenization market, leveraging its existing fintech infrastructure and connections. Despite a recent earnings drop, the company maintains a 10% growth target and strong cash flow, trading at a significant discount to its historical price-to-sales valuation.

“So here folks, you have that rare time when a legacy powerhouse is actively embracing technological change and the combination of Fiser's established connections with this new platform means it is right here where we're going to see that stable coin go mainstream.”

The YouTuber likes Fiserv as an "undiscovered opportunity" in the stablecoin space, highlighting its plan to launch its own stablecoin and platform. This move would instantly connect it to its 10,000+ institutional clients, leveraging its existing financial infrastructure to compete with new players like Circle.

“Now, in this, I also like Fiser, which I highlighted last month as the financial juggernaut with the old school networks to beat Circle at its own game.”

The YouTuber strongly recommends Fiserv, Inc. as a superior play in the stablecoin market compared to Circle. Fiserv, a fintech powerhouse with extensive reach and connections, plans to launch its own stablecoin platform, compatible with others and instantly connected to its vast network. With a 30% operating margin, three times higher than Circle's, and a potential $2-4 trillion tokenized asset market by 2030, Fiserv is positioned for significant growth, potentially yielding 30% annual returns for years.

“Fiser, Inc., Ticker FI announced last week its plan to launch its own stable coin and platform for clients. And while investors have been chasing CRCL, it's Fiserv that is the reach and connections to dominate this stable coin era.”

The YouTuber highlights Fiserv as a financial juggernaut that could compete with Circle in the stablecoin space. He notes Fiserv's recent announcement to launch its own stablecoin and platform, leveraging its existing network of over 10,000 institutions.

“Took her FI, which I highlighted last week as the financial juggernaut with the old school networks to beat Circle at its own game. Fiserv announced two weeks ago a plan to launch its own stable coin and platform for clients, instantly hooking it up into the 10,000 plus institutions for which process payments and services.”

The YouTuber recommends Fiserv as an overlooked giant poised to dominate the stablecoin market, similar to how Amazon dominates e-commerce. Fiserv's established connections and platform compatibility with other stablecoins give it a significant advantage over newer competitors like Circle. The stock is currently undervalued at 4.7 times price-to-sales, compared to its historical average and the much higher valuation of Circle, with potential for significant re-rating as the stablecoin platform develops.

“Fiserv Inc. Ticker FI announced last week a plan to launch its own stable coin and platform for clients and versus newbie CRCL. Fiserv has the reach and the connections to dominate the space.”