Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. 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 2.3%. This drop mirrored the S&P 500’s decline.

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. With that said, here are two resilient services stocks at the top of our wish list and one that may face trouble.

One Business Services Stock to Sell:

ICF International (ICFI)

Market Cap: $1.56 billion

Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.

Why Does ICFI Worry Us?

1. Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 4.3% for the past two years was weak

2. Estimated sales decline of 6.2% for the next 12 months implies a challenging demand environment

3. Underwhelming 7.6% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $84.90 per share, ICF International trades at 10.6x forward price-to-earnings. If you’re considering ICFI for your portfolio, see our FREE research report to learn more .

Two Business Services Stocks to Watch:

Iridium (IRDM)

Market Cap: $3.00 billion

With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications (NASDAQ:IRDM) operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.

Why Could IRDM Be a Winner?

1. Rapid growth in commercial subscribers demonstrates strong market adoption

2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 214% exceeded its revenue gains over the last two years

3. IRDM 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

Iridium’s stock price of $27.38 implies a valuation ratio of 23.5x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free .

Liquidity Services (LQDT)

Market Cap: $959.1 million