
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets. These doubts have certainly contributed to services stocks’ recent underperformance - over the past six months, the industry’s 9.1% gain has fallen behind the S&P 500’s 14.4% rise.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here are three resilient services stocks at the top of our wish list.
IonQ (IONQ)
Market Cap: $17.24 billion
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Are We Positive On IONQ?
- Market share has increased this cycle as its 101% annual revenue growth over the last two years was exceptional
- Market share is on track to rise over the next 12 months as its 116% projected revenue growth implies demand will accelerate from its two-year trend
- Adjusted operating margin expanded by 4,567.4 percentage points over the last five years as it scaled and became more efficient
At $48.54 per share, IonQ trades at 80x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Globalstar (GSAT)
Market Cap: $8.26 billion
Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ: GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.
Why Is GSAT a Top Pick?
- Annual revenue growth of 15.6% over the last five years was superb and indicates its market share increased during this cycle
- Robust free cash flow margin of 32.9% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
- Historical investments are beginning to pay off as its returns on capital are growing
Globalstar is trading at $65.01 per share, or 51x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
EPAM (EPAM)
Market Cap: $11.05 billion
Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE: EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.
Why Do We Like EPAM?
- Revenue base of $5.30 billion gives it economies of scale and some distribution advantages
- EPAM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
- ROIC punches in at 25.5%, illustrating management’s expertise in identifying profitable investments
EPAM’s stock price of $199.76 implies a valuation ratio of 15.6x 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
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 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-micro-cap company Tecnoglass (+1,754% 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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