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 18.9% over the past six months, almost identical to the S&P 500.

Although these companies have produced results, only a handful will thrive over the long term as AI-driven upstarts are rapidly taking share from the incumbents. With that said, here is one services stock poised to generate sustainable market-beating returns and two we’re passing on.

Two Business Services Stocks to Sell:

Jabil (JBL)

Market Cap: $23.06 billion

With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE: JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.

Why Do We Think Twice About JBL?

1. Sales tumbled by 7.3% annually over the last two years, showing market trends are working against its favor during this cycle
2. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 6.5% annually
3. Poor free cash flow margin of 3.1% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Jabil is trading at $215.20 per share, or 19.8x forward P/E. To fully understand why you should be careful with JBL, check out our full research report (it’s free).

Omnicom Group (OMC)

Market Cap: $15 billion

With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE: OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.

Why Are We Hesitant About OMC?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Free cash flow margin shrank by 4.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $77.69 per share, Omnicom Group trades at 8.9x forward P/E. Check out our free in-depth research report to learn more about why OMC doesn’t pass our bar.

One Business Services Stock to Buy:

ADP (ADP)

Market Cap: $118.1 billion

Processing one out of every six paychecks in the United States, ADP (NASDAQ: ADP) provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.

Why Should You Buy ADP?

1. Annual revenue growth of 7.1% over the last five years beat the sector average and underscores the unique value of its offerings
2. Robust free cash flow margin of 20.6% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
3. Returns on capital are climbing as management makes more lucrative bets

ADP’s stock price of $293.48 implies a valuation ratio of 26.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).

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-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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