Dealmaker’s Diary: Bank on This Cheap Fintech That’s Growing Quickly

Alpesh Patel|February 29, 2024

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After last year’s one-two-three punch of banking blowups…

The sector is undervalued by many measures.

Add to that the rise of AI…

And you get a cheap fintech stock that is quickly growing.

It’s a leading provider of processing and services, including electronic funds transfer, payment processing, and loan processing for U.S. banks and credit unions.

Revenue and net income last year increased significantly… the stock has low volatility… and it’s outperforming the market.

We can bank on that.

Get all the details on the company – including the ticker – in my latest video.

Click on the image below to check it out.

And if you have a stock you’d like me to run through my GVI system, send the ticker to mailbag@manwardpress.com.

 

Transcript

See How Alpesh’s Readers Scored 250% in Just THREE DAYS

Hi, friends. Well, with technology so much in the news… my Dealmaker’s Diary this week is a tech stock. But it’s also hitting on a sector that looks undervalued on traditional measures…

Finance.

So we’re looking at fintech.

Fiserv (FI) is the company I’ve gone for. Now, they’re a leading provider of processing and services, including electronic funds transfer, payment processing and loan processing for U.S. banks and credit unions.

They particularly focus on small and midsized banks.

What can I tell you about the company, in particular, that is attractive?

Well, it’s got three major segments… merchant acceptance, financial technology (fintech) payments, and networks. As there is more money in our global financial system, there’s increased growth.

We should see those transactions continue to grow.

Revenue and net income for 2023 increased significantly over the preceding year.

And given that 2022 was pretty poor for both the markets and the global economy, you can see how that became a springboard for 2023, which was great, and now into 2024 as well.

The forward P/E is 17.4… not bad for a tech company.

I told you financial stocks were cheap.

On my proprietary Growth-Value-Income rating – a score out of 10 that weighs growth, value and income – it’s an 8 out of 10. Good. Meets my minimum score.

Its CROCI is 6.7. Now, this is, as you know, invented by Deutsche Bank and used by Goldman Sachs Wealth Management.

And I want that to be in the top quartile. Whilst this is just slightly below that, click here to see why CROCI is important.

It’s still a good number.

The Sortino meets my minimum. It’s above 0.3. That’s a measure of the return versus the risk of missing it.

Volatility is pretty low at 9.4%. I don’t like having a heart attack when I’m investing in stocks.

And it’s return alpha is positive. In other words, it’s outperforming the market… and the stock has good momentum.

The only concern I have slightly is that the stock is a little bit overbought.

But it’s undervalued, which ticks that box as well.

So it has lots going for it.

Thank you very much.