2 Services Stocks to Target This Week and 1 That Underwhelm

Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. These firms have helped their customers unlock huge efficiencies, so it’s no surprise the industry has posted a 9.2% gain over the past six months, nearly mirrorring the S&P 500.

Regardless of these results, investors must exercise caution as many companies in this space are sensitive to the ebbs and flows of the broader economy. Taking that into account, here are two services stocks we think can generate sustainable market-beating returns and one we’re passing on.

One Business Services Stock to Sell:

ASGN (ASGN)

Market Cap: $2.12 billion

Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE:ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.

Why Are We Out on ASGN?

1. Sales tumbled by 6.2% annually over the last two years, showing market trends are working against its favor during this cycle
2. Sales are projected to be flat over the next 12 months and imply weak demand
3. Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew

ASGN is trading at $49.71 per share, or 10.3x forward P/E. Read our free research report to see why you should think twice about including ASGN in your portfolio.

Two Business Services Stocks to Watch:

TaskUs (TASK)

Market Cap: $974.7 million

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 Are We Positive On TASK?

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 jumped by 21.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Historical investments are beginning to pay off as its returns on capital are growing

At $10.80 per share, TaskUs trades at 7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

MediaAlpha (MAX)

Market Cap: $582.3 million

Powering nearly 10 million consumer referrals each month in the insurance marketplace, MediaAlpha (NYSE:MAX) operates a technology platform that connects insurance carriers with high-intent consumers shopping for property, casualty, health, and life insurance products.

Why Is MAX a Top Pick?

1. Annual revenue growth of 68.6% over the last two years was superb and indicates its market share increased during this cycle
2. Free cash flow margin grew by 5.1 percentage points over the last five years, giving the company more chips to play with
3. Returns on capital are climbing as management makes more lucrative bets

MediaAlpha’s stock price of $10.25 implies a valuation ratio of 8.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.