10 Best Cash App Stocks to Buy According to Hedge Funds

6. Fiserv Inc. (NYSE:FI)

Number of Hedge Fund Holders: 71

One of the Best Cash App Stocks, Fiserv, Inc. (NYSE:FI) is a top supplier of core processing and ancillary services for US banks and credit unions, concentrating on small and midsize banks. These services include electronic funds transfers, payment processing, and loan processing. In 2019, the firm merged with First Data to offer retailers payment processing services as well. The company’s overseas revenue accounts for around 10% of its total revenue.

Fiserv, Inc. (NYSE:FI)’s adjusted profits per share rose 17% to $2.30, indicating solid revenue and earnings growth. The adjusted operating margin increased by 170 basis points to 40.2%, supported by a 15% increase in organic revenue, while adjusted revenue increased by 7%.

Clover, the company’s credit card processing business, achieved a 28% growth in sales, while value-added services reached a penetration rate of 21%. These factors contributed to a 24% organic revenue growth in the Merchant Solutions segment. The business revealed significant partnerships and projects, such as agreements with Walmart for real-time Pay by Bank transactions and DoorDash for embedded finance solutions. Along with the growth of Clover pilots in Brazil and Mexico, new features were introduced, including the enterprise commerce control center.

Organic revenue in the Financial Solutions category increased by 6%, driven by important wins such as Exxon signing on for a Data-as-a-Service offering and PNC implementing an AI-enabled fraud detection product.

Fiserv, Inc. (NYSE:FI) increased its 2024 estimate, showing confidence in its sustained good performance. It increased the expectations for organic revenue growth from 15%-17% to 16%-17% and adjusted EPS guidance to $8.73-$8.80.

Delaware Ivy Core Equity Fund stated the following regarding Fiserv, Inc. (NYSE:FI) in its Q3 2024 investor letter:

“Fiserv, Inc. (NYSE:FI) – Solid revenue and profitability trends drove price appreciation during the quarter. The payments-processing and bank technology company remains a reasonably valued alternative to capitalize on digital conversion of payments and technology migration in the banking industry.”