Earnings Season Approaches: Analysts Downgrade Financial Stocks' EPS Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: seekingalpha
- Analyst Sentiment Decline: As earnings season approaches, analysts have broadly downgraded earnings expectations for financial companies, leading to a decline in EPS Revision Grades for several stocks, reflecting weakened market confidence in short-term performance.
- Earnings Downgrades: Unum (UNM) and Block (XYZ) received EPS Revision Grades of D and D, respectively, indicating a pessimistic outlook from investors regarding their profitability, which may adversely affect their stock performance.
- Large Financial Stocks Struggling: Lloyds Banking (LYG) and UBS Group AG (UBS) received Revision Grades of D- and D, suggesting significant pressure on these large financial institutions regarding earnings expectations, potentially prompting investors to reassess their investment value.
- Market Focus: Companies like HDFC Bank (HDB) and Mizuho Financial (MFG) also faced negative revisions, with EPS Revision Grades of F and F, respectively, indicating a substantial decline in market confidence in these financial stocks, which may impact their future financing and growth capabilities.
Analyst Views on FISV
Wall Street analysts forecast FISV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FISV is 107.61 USD with a low forecast of 62.00 USD and a high forecast of 185.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
10 Buy
19 Hold
0 Sell
Moderate Buy
Current: 66.750
Low
62.00
Averages
107.61
High
185.00
Current: 66.750
Low
62.00
Averages
107.61
High
185.00
About FISV
Fiserv, Inc. is a global provider of payments and financial services technology solutions. Its segments include Merchant Solutions (Merchant) and Financial Solutions (Financial). The businesses in its Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; software-as-a-service; POS devices; and pay-by-bank solutions. The business lines in its Merchant segment consist of small business, enterprise, and processing. The businesses in its Financial segment provide products and services to financial institutions, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The business lines in its Financial segment consist of digital payments, issuing, and banking.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
