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, limiting the industry’s gains to 9.1% over the past six months. This return lagged the S&P 500’s 14.4% climb.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. With that said, here is one services stock boasting a durable advantage and two we’re steering clear of.

Two Business Services Stocks to Sell:

Jacobs Solutions (J)

Market Cap: $16.47 billion

With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE: J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.

Why Do We Steer Clear of J?

1. Annual sales declines of 2.4% for the past five years show its products and services struggled to connect with the market during this cycle
2. Flat earnings per share over the last five years lagged its peers
3. ROIC of 8.1% reflects management’s challenges in identifying attractive investment opportunities

At $137.93 per share, Jacobs Solutions trades at 19x forward P/E. Read our free research report to see why you should think twice about including J in your portfolio.

CDW (CDW)

Market Cap: $18.71 billion

Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ: CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services.

Why Does CDW Worry Us?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Estimated sales growth of 2.1% for the next 12 months is soft and implies weaker demand
3. Flat earnings per share over the last two years underperformed the sector average

CDW’s stock price of $144.31 implies a valuation ratio of 14.1x forward P/E. Check out our free in-depth research report to learn more about why CDW doesn’t pass our bar.

One Business Services Stock to Watch:

TaskUs (TASK)

Market Cap: $1.09 billion

Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ: TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.

Why Does TASK Stand Out?

1. Market share has increased this cycle as its 21.1% annual revenue growth over the last five years was exceptional
2. Free cash flow margin expanded by 21.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
3. Improving returns on capital suggest its past investments are beginning to deliver value

TaskUs is trading at $12.06 per share, or 7.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% 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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