Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. But increasing competition from AI-driven upstarts has tempered enthusiasm, and over the past six months, the industry has pulled back by 3.1%. This drawdown was disheartening since the S&P 500 stood firm. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here are two resilient services stocks at the top of our wish list and one best left ignored. One Business Services Stock to Sell: TTM Technologies (TTMI) Market Cap: $3.01 billion As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ:TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries. Why Do We Think TTMI Will Underperform? Muted 1.3% annual revenue growth over the last two years shows its demand lagged behind its business services peers Free cash flow margin dropped by 9.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up ROIC of 4.7% reflects management’s challenges in identifying attractive investment opportunities TTM Technologies is trading at $30.22 per share, or 14.3x forward P/E. To fully understand why you should be careful with TTMI, check out our full research report (it’s free). Two Business Services Stocks to Watch: Barrett (BBSI) Market Cap: $1.07 billion Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ:BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions. Why Could BBSI Be a Winner? Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient ROIC punches in at 57.3%, illustrating management’s expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities Rising returns on capital show management is finding more attractive investment opportunities Barrett’s stock price of $41.59 implies a valuation ratio of 18.4x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free. Story Continues RB Global (RBA) Market Cap: $19.54 billion Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE:RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries. Why Do We Like RBA? Annual revenue growth of 52.9% over the past two years was outstanding, reflecting market share gains this cycle Adjusted operating margin expanded by 3.4 percentage points over the last five years as it scaled and became more efficient Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 19.7% annually At $105.51 per share, RB Global trades at 28x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free. Stocks We Like Even More The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. View Comments
2 Services Stocks on Our Watchlist and 1 to Question
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