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華爾街日報2 Services Stocks with Promising Prospects and 1 We Question
Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets. These doubts have certainly contributed to services stocks’ recent underperformance - over the past six months, the industry’s 12% gain has fallen behind the S&P 500’s 13.6% rise.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Keeping that in mind, here are two services stocks boasting durable advantages and one we’re passing on.
One Business Services Stock to Sell:
Rogers (ROG)
Market Cap: $1.65 billion
With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE:ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications.
Why Should You Dump ROG?
- Sales tumbled by 7% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share fell by 15.7% annually over the last five years while its revenue was flat, showing each sale was less profitable
- 5.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Rogers’s stock price of $91.63 implies a valuation ratio of 28.2x forward P/E. To fully understand why you should be careful with ROG, check out our full research report (it’s free for active Edge members).
Two Business Services Stocks to Watch:
Grid Dynamics (GDYN)
Market Cap: $853.1 million
With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics (NASDAQ:GDYN) provides technology consulting, engineering, and analytics services to help large enterprises modernize their technology systems and business processes.
Why Are We Positive On GDYN?
- Annual revenue growth of 29.1% over the past five years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 22.2% annually over the last five years, massively outpacing its peers
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Grid Dynamics is trading at $10.09 per share, or 22.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
RB Global (RBA)
Market Cap: $19.04 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 Love RBA?
- Annual revenue growth of 21.2% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share grew by 18.7% annually over the last five years and trumped its peers
- RBA is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $102.59 per share, RB Global trades at 24.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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