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, capping the upside for services stocks lately - over the past six months, the industry’s flat return has trailed the S&P 500’s 5.1% gain.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. On that note, here are two services stocks boasting durable advantages and one we’re swiping left on.

One Business Services Stock to Sell:

Amdocs (DOX)

Market Cap: $7.39 billion

Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs (NASDAQ: DOX) provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations.

Why Does DOX Fall Short?

1. Annual sales declines of 3.8% for the past two years show its products and services struggled to connect with the market during this cycle
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.2%
3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8.9% annually

At $68.96 per share, Amdocs trades at 9x forward P/E. If you’re considering DOX for your portfolio, see our FREE research report to learn more.

Two Business Services Stocks to Watch:

Interface (TILE)

Market Cap: $1.68 billion

Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ: TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.

Why Could TILE Be a Winner?

1. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 38.9% outpaced its revenue gains
2. Free cash flow margin increased by 3.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. Returns on capital are growing as management capitalizes on its market opportunities

Interface is trading at $29 per share, or 14x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Amphenol (APH)

Market Cap: $163.2 billion

With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.

Why Will APH Outperform?

1. Market share has increased this cycle as its 35.6% annual revenue growth over the last two years was exceptional
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 49% outpaced its revenue gains
3. APH is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute

Amphenol’s stock price of $137.50 implies a valuation ratio of 29.6x forward P/E. Is now a good 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.

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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.