Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. Furthermore, the demand for their offerings is rising as more clients outsource non-core functions, a trend that has enabled the industry to return 21.4% over the past six months. At the same time, the S&P 500 was up 12.7%.
Nevertheless, investors should tread carefully as many companies in this space are cyclical due to their reliance on corporate spending budgets. With that said, here are three services stocks we think can generate sustainable market-beating returns.
Mirion (MIR)
Market Cap: $3.85 billion
With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE: MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.
Why Is MIR on Our Radar?
- Impressive 11.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Adjusted operating margin improvement of 13.3 percentage points over the last five years demonstrates its ability to scale efficiently
- Free cash flow margin expanded by 13.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Mirion is trading at $16.26 per share, or 27.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
UL Solutions (ULS)
Market Cap: $14.35 billion
Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE: ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.
Why Will ULS Beat the Market?
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 23% annually, topping its revenue gains
- Free cash flow margin grew by 6.1 percentage points over the last five years, giving the company more chips to play with
- ROIC punches in at 26.6%, illustrating management’s expertise in identifying profitable investments
UL Solutions’s stock price of $71.13 implies a valuation ratio of 30x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Fair Isaac Corporation (FICO)
Market Cap: $20.75 billion
Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.
Why Do We Love FICO?
- Share repurchases over the last two years enabled its annual earnings per share growth of 33.8% to outpace its revenue gains
- FICO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business
- Returns on capital are climbing as management makes more lucrative bets
At $961.42 per share, Fair Isaac Corporation trades at 19.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
