Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. Market leaders have certainly capitalized on outsourcing trends and digital transformation initiatives to boost sales, helping fuel a 15.1% gain for the industry over the past six months. This performance has closely followed the S&P 500.

Regardless of these results, investors must exercise caution as many companies in this space are sensitive to the ebbs and flows of the broader economy. With that said, here is one resilient services stock at the top of our wish list and two best left ignored.

Two Business Services Stocks to Sell:

Getty Images (GETY)

Market Cap: $887.7 million

With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE: GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.

Why Should You Sell GETY?

1. Sales trends were unexciting over the last two years as its 1.3% annual growth was below the typical business services company
2. Efficiency has decreased over the last five years as its adjusted operating margin fell by 3.9 percentage points
3. Free cash flow margin dropped by 12.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Getty Images’s stock price of $2.14 implies a valuation ratio of 3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why GETY doesn’t pass our bar.

HNI (HNI)

Market Cap: $2.09 billion

With roots dating back to 1944 and a significant acquisition of Kimball International in 2023, HNI (NYSE: HNI) manufactures and sells office furniture systems, seating, and storage solutions, as well as residential fireplaces and heating products.

Why Are We Wary of HNI?

1. 4.9% annual revenue growth over the last five years was slower than its business services peers
2. Estimated sales growth of 3.4% for the next 12 months implies demand will slow from its two-year trend
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.2 percentage points

At $45.55 per share, HNI trades at 12.3x forward P/E. If you’re considering HNI for your portfolio, see our FREE research report to learn more.

One Business Services Stock to Watch:

Verisk (VRSK)

Market Cap: $34.12 billion

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Why Is VRSK on Our Radar?

1. Average constant currency growth of 7.4% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
3. Rising returns on capital show management is finding more attractive investment opportunities

Verisk is trading at $244.09 per share, or 32.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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-micro-cap company Kadant (+351% 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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