2 Services Stocks with Solid Fundamentals and 1 Facing Headwinds

Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. Furthermore, the demand for their offerings is rising as more clients outsource non-core functions, a trend that has enabled the industry to return 9.2% over the past six months, almost identical to the S&P 500.

Although these companies have produced results, only a handful will thrive over the long term as AI-driven upstarts are rapidly taking share from the incumbents. With that said, here are two services stocks we think can generate sustainable market-beating returns and one we’re steering clear of.

One Business Services Stock to Sell:

MillerKnoll (MLKN)

Market Cap: $1.37 billion

Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ:MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.

Why Are We Wary of MLKN?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Issuance of new shares over the last five years caused its earnings per share to fall by 8.4% annually while its revenue grew
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

MillerKnoll’s stock price of $20 implies a valuation ratio of 9.4x forward P/E. To fully understand why you should be careful with MLKN, check out our full research report (it’s free).

Two Business Services Stocks to Watch:

IonQ (IONQ)

Market Cap: $14.16 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 Could IONQ Be a Winner?

1. Annual revenue growth of 101% over the last two years was superb and indicates its market share increased during this cycle
2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 115%
3. Adjusted operating margin improvement of 4,567.4 percentage points over the last five years demonstrates its ability to scale efficiently

At $40.25 per share, IonQ trades at 74.2x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Maximus (MMS)

Market Cap: $5.15 billion

With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE:MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.

Why Are We Fans of MMS?

1. Annual revenue growth of 9.4% over the past five years was outstanding, reflecting market share gains this cycle
2. Economies of scale give it more fixed cost leverage than its smaller competitors
3. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Maximus is trading at $94.45 per share, or 11.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 6 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.