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2 Services Stocks with Promising Prospects and 1 We Avoid

HPQ Cover Image

Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. But cutbacks in corporate spending and the threat of new AI products have kept sentiment in check, and over the past six months, the industry’s 2.3% return has trailed the S&P 500 by 7.6 percentage points.

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. With that said, here are two services stocks boasting durable advantages and one we’re swiping left on.

One Business Services Stock to Sell:

HP (HPQ)

Market Cap: $20.45 billion

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

Why Do We Think HPQ Will Underperform?

  1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
  2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually
  3. Free cash flow margin dropped by 4.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up

HP’s stock price of $22.34 implies a valuation ratio of 7.3x forward P/E. Dive into our free research report to see why there are better opportunities than HPQ.

Two Business Services Stocks to Watch:

Accenture (ACN)

Market Cap: $165.1 billion

With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE: ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.

Why Are We Fans of ACN?

  1. Annual revenue growth of 9.6% over the past five years was outstanding, reflecting market share gains this cycle
  2. Massive revenue base of $70.73 billion makes it a well-known name that influences purchasing decisions
  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

At $268.70 per share, Accenture trades at 19.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Ryan Specialty (RYAN)

Market Cap: $6.65 billion

Founded in 2010 by insurance industry veteran Patrick Ryan, Ryan Specialty (NYSE: RYAN) is a wholesale insurance broker and underwriting manager that helps retail brokers place complex or hard-to-place risks with insurance carriers.

Why Should You Buy RYAN?

  1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 12.8% over the past two years
  2. Earnings per share have massively outperformed its peers over the last two years, increasing by 23.1% annually
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Ryan Specialty is trading at $51.63 per share, or 22.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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-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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