Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. But increasing competition from AI-driven upstarts has tempered enthusiasm, and over the past six months, the industry has pulled back by 7.6%. This drawdown was disappointing since the S&P 500 held steady.

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. Keeping that in mind, here are two services stocks boasting durable advantages and one we’re swiping left on.

One Business Services Stock to Sell:

UniFirst (UNF)

Market Cap: $4.8 billion

With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE: UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries.

Why Does UNF Fall Short?

1. Annual revenue growth of 3.5% over the last two years was below our standards for the business services sector
2. Projected sales growth of 2.5% for the next 12 months suggests sluggish demand
3. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2.1% annually

UniFirst is trading at $265.29 per share, or 36.8x forward P/E. Dive into our free research report to see why there are better opportunities than UNF.

Two Business Services Stocks to Watch:

UL Solutions (ULS)

Market Cap: $16.75 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 Does ULS Catch Our Eye?

1. Adjusted operating profits and efficiency rose over the last four years as it benefited from some fixed cost leverage
2. Free cash flow margin increased by 7.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. ROIC punches in at 28.5%, illustrating management’s expertise in identifying profitable investments

UL Solutions’s stock price of $83.34 implies a valuation ratio of 39.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Motorola Solutions (MSI)

Market Cap: $76.06 billion

Born from the company that invented the first portable handheld police radio in 1940, Motorola Solutions (NYSE: MSI) provides mission-critical communications, video security, and command center software solutions for public safety agencies and enterprise customers.

Why Will MSI Outperform?

1. Annual revenue growth of 9.5% over the last five years was superb and indicates its market share increased during this cycle
2. MSI 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
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

At $461.41 per share, Motorola Solutions trades at 27.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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.