1 Services Stock to Own for Decades and 2 That Underwhelm

Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. 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’s 2.4% return has trailed the S&P 500 by 3.5 percentage points.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here is one resilient services stock at the top of our wish list and two best left ignored.

Two Business Services Stocks to Sell:

Iridium (IRDM)

Market Cap: $2.43 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 Are We Cautious About IRDM?

1. 5% annual revenue growth over the last two years was slower than its business services peers
2. Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its two-year trend
3. Free cash flow margin dropped by 7.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $23.28 per share, Iridium trades at 18.5x forward P/E. To fully understand why you should be careful with IRDM, check out our full research report (it’s free).

Diebold Nixdorf (DBD)

Market Cap: $2.82 billion

With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE:DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.

Why Should You Dump DBD?

1. Sales stagnated over the last five years and signal the need for new growth strategies
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Waning returns on capital imply its previous profit engines are losing steam

Diebold Nixdorf’s stock price of $80.78 implies a valuation ratio of 13.7x forward P/E. Dive into our free research report to see why there are better opportunities than DBD.

One Business Services Stock to Buy:

Baldwin Insurance Group (BWIN)

Market Cap: $1.58 billion

Rebranded from BRP Group in May 2024, Baldwin Insurance Group (NASDAQ:BWIN) is an independent insurance distribution company that provides tailored insurance, risk management, and employee benefits solutions to businesses and individuals.

Why Are We Backing BWIN?

1. Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 13.6% over the past two years
2. Adjusted operating margin expanded by 7.1 percentage points over the last five years as it scaled and became more efficient
3. Earnings per share have massively outperformed its peers over the last two years, increasing by 22.5% annually

Baldwin Insurance Group is trading at $16.49 per share, or 8.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.