Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets. These doubts have caused the industry to lag recently as services stocks have collectively shed 10.9% over the past six months. This drawdown was worse than the S&P 500’s 1.9% decline.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Taking that into account, here is one resilient services stock at the top of our wish list and two we’re passing on.

Two Business ServicesStocks to Sell:

Jacobs Solutions (J)

Market Cap: $15.1 billion

With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE: J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.

Why Do We Pass on J?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Sales pipeline suggests its future revenue growth likely won’t meet our standards as its backlog hasn’t budged over the past two years
3. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 9.6% annually

Jacobs Solutions is trading at $125.84 per share, or 19.6x forward P/E. Check out our free in-depth research report to learn more about why J doesn’t pass our bar.

CBIZ (CBZ)

Market Cap: $3.85 billion

With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE: CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.

Why Does CBZ Give Us Pause?

1. Free cash flow margin dropped by 10.2 percentage points over the last five years, implying the company increased its investment activities to fend off competitors
2. Below-average returns on capital indicate management struggled to find compelling investment opportunities
3. 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

CBIZ’s stock price of $72 implies a valuation ratio of 18.9x forward P/E. If you’re considering CBZ for your portfolio, see our FREE research report to learn more.

One Business Services Stock to Watch:

Huron (HURN)

Market Cap: $2.32 billion

Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ: HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.

Why Do We Like HURN?

1. Market share has increased this cycle as its 13.1% annual revenue growth over the last two years was exceptional
2. Adjusted operating margin expanded by 8.6 percentage points over the last five years as it scaled and became more efficient
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 34.6% exceeded its revenue gains over the last two years

At $145.25 per share, Huron trades at 19.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 6 Stocks for this week. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.