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 6.4%. This drop was discouraging since the S&P 500 returned 3.3%.

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 is one resilient services stock at the top of our wish list and two best left ignored.

Two Business Services Stocks to Sell:

Genpact (G)

Market Cap: $7.43 billion

Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE: G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.

Why Does G Worry Us?

1. Estimated sales growth of 3.9% for the next 12 months is soft and implies weaker demand
2. Earnings per share lagged its peers over the last two years as they only grew by 9.4% annually
3. Free cash flow margin dropped by 4 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Genpact’s stock price of $42.49 implies a valuation ratio of 11.8x forward P/E. Dive into our free research report to see why there are better opportunities than G.

Hewlett Packard Enterprise (HPE)

Market Cap: $25.99 billion

Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.

Why Are We Out on HPE?

1. Sizable revenue base leads to growth challenges as its 2.9% annual revenue increases over the last five years fell short of other business services companies
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 5.9% annually
3. 6.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Hewlett Packard Enterprise is trading at $19.86 per share, or 10.2x forward P/E. To fully understand why you should be careful with HPE, check out our full research report (it’s free).

One Business Services Stock to Watch:

Concentrix (CNXC)

Market Cap: $2.91 billion

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Why Are We Fans of CNXC?

1. Annual revenue growth of 22% over the last two years was superb and indicates its market share increased during this cycle
2. Economies of scale give it more fixed cost leverage than its smaller competitors
3. Respectable free cash flow margin of 5.5% minimizes the need for external capital because it can finance growth internally

At $46 per share, Concentrix trades at 3.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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