3 Service Sector Stocks With Pricing Power Investors Should Watch

Inflation is getting pulled in different directions right now, with energy swings, higher services costs, tech demand, and war driven spending all feeding into the same story. That mix can be uncomfortable for markets, but it can also create clear winners and losers as pricing power, cost control, and business models are put to the test. This article looks at 3 service sector stocks from our screener that appear closely tied to these trends and explains how the recent news could affect them. The goal is to help you evaluate whether they deserve a closer look or a wider margin of caution.

LivaNova (LIVN)

Overview: LivaNova is a medical technology company that supplies heart-lung machines, oxygenators, and other cardiopulmonary tools, as well as implantable neuromodulation devices such as vagus nerve stimulators for drug resistant epilepsy, depression, and obstructive sleep apnea, serving hospitals and specialists across the US, Europe, and other international markets.

Operations: LivaNova generates most of its revenue from Cardiopulmonary products at about US$817.7m and Neuromodulation at about US$605.7m, with a small US$10.0m contribution from Other activities, and significant exposure to both the United States at about US$755.1m and the Rest of World at about US$393.2m.

Market Cap: US$4.5b

LivaNova stands out in this inflation driven backdrop because its essential cardiopulmonary and neuromodulation therapies tend to see steady demand while healthcare providers remain focused on treating epilepsy, depression, and sleep apnea. The company is already profitable, and recent OSPREY trial data for its aura6000 sleep apnea system points to a stronger, higher margin product mix over time. At the same time, a high P/E, externally funded liabilities, and reimbursement or regulatory risk mean the story is not risk free. If you are wondering how all of this lines up with valuation, future expectations, and the current share price, there is more to unpack in the full analysis.

LivaNova’s higher margin aura6000 story, combined with steady cardiopulmonary demand, could be masking what really matters for valuation. Get the full picture with the DCF valuation analysis for LivaNova, including one detail most investors may be overlooking.

Alignment Healthcare (ALHC)

Overview: Alignment Healthcare is a US based health insurer that offers Medicare Advantage plans built around a consumer focused platform for seniors, aiming to coordinate care, manage costs, and improve health outcomes through a tightly integrated service model.

Operations: Alignment Healthcare generates about US$4.3b in revenue from providing healthcare services to seniors in the United States.

Market Cap: US$4.1b

Alignment Healthcare sits at the intersection of rising healthcare costs and persistent services inflation, which keeps demand for value focused Medicare Advantage plans firmly in play. The company has recently become profitable, with revenue growth forecasts above the broader US market and a P/S ratio around 1x that leaves room for investors to debate whether expectations are too low. At the same time, a whistleblower lawsuit alleging accounting manipulation, a volatile share price, and reliance on external funding mean the risk side of the ledger cannot be ignored. The question is whether Alignment’s technology enabled care model and strong plan quality metrics compensate for these concerns enough to justify a closer look.

Alignment Healthcare’s recently profitable model and roughly 1x P/S suggest expectations may still be catching up to the story, but the real swing factor could be buried in the analyst forecasts for Alignment Healthcare that market sentiment has yet to fully price in

Envista Holdings (NVST)

Overview: Envista Holdings is a dental products group that supplies dentists, clinics, and hospitals with everything from implants, orthodontic systems, and clear aligners to imaging equipment, software, and everyday dental consumables under brands such as Nobel Biocare, Ormco, Spark, DEXIS, and Kerr.

Operations: Envista generates most of its revenue from Specialty Products & Technologies at about US$1.8b, with Equipment & Consumables contributing around US$997.8m.

Market Cap: US$4.2b

Envista Holdings gives you exposure to dental care, an area of healthcare where demand often recurs as patients need routine and restorative treatment, and where price increases can sometimes stick when inflation is pushing up input and freight costs. The company is now profitable, has a broad mix of higher value products like implants and digital orthodontics, and is buying back shares under a US$300m program. At the same time, its revenue growth outlook is modest and its P/E sits well above many medical equipment peers. When you also factor in exposure to tariffs, Chinese procurement reforms, and currency swings, Envista becomes a stock where pricing power, cost control, and valuation really matter, but the full story is not immediately obvious from the headline numbers.

Envista Holdings’ high P/E and share buybacks suggest the market might be missing a key angle on quality versus price. Scan the analysis report for Envista Holdings to see what could shift the story next.

The three service sector stocks in this article are just a starting point, with our full Service Sector Stocks screener surfacing 32 more companies that pair resilient service based business models with equally compelling narratives around pricing power, cost control, and balance sheet strength. Unlock a wider opportunity set and identify your highest conviction ideas by using Simply Wall St to filter for the specific catalysts and narratives that matter most to you, such as earnings quality and balance sheet health, as well as sector exposure and valuation signals.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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