
2 Services Stocks to Target This Week and 1 to Avoid

Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. But cutbacks in corporate spending and the threat of new AI products have kept sentiment in check, and over the past six months, the industry has tumbled by 1.9%. This drop mirrored the S&P 500’s decline.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here are two resilient services stocks at the top of our wish list and one best left ignored.
One Business Services Stock to Sell:
Insperity (NSP)
Market Cap: $3.36 billion
Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE:NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.
Why Are We Hesitant About NSP?
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Anticipated sales growth of 4.9% for the next year implies demand will be shaky
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Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 3.2 percentage points
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Earnings per share fell by 2.9% annually over the last five years while its revenue grew, partly because it diluted shareholders
Insperity’s stock price of $90.63 implies a valuation ratio of 25.3x forward price-to-earnings. If you’re considering NSP for your portfolio, see our FREE research report to learn more .
Two Business Services Stocks to Watch:
Amphenol (APH)
Market Cap: $77.33 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 Should You Buy APH?
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Annual revenue growth of 13.1% over the last five years was superb and indicates its market share increased during this cycle
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Dominant market position is represented by its $15.22 billion in revenue and gives it fixed cost leverage when sales grow
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Earnings per share have massively outperformed its peers over the last five years, increasing by 15.1% annually
At $64.20 per share, Amphenol trades at 29.1x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free .
Broadridge (BR)
Market Cap: $27.06 billion
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.