2 Services Stocks Worth Your Attention and 1 We Ignore

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 2.6%. This performance was disheartening since the S&P 500 gained 4.8%.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Keeping that in mind, here are two services stocks we think can generate sustainable market-beating returns and one that may face trouble.

One Business Services Stock to Sell:

Vestis (VSTS)

Market Cap: $1.04 billion

Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE:VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.

Why Do We Avoid VSTS?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.7% annually over the last two years
2. Earnings per share have dipped by 32.7% annually over the past three years, which is concerning because stock prices follow EPS over the long term
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Vestis’s stock price of $7.86 implies a valuation ratio of 19.4x forward P/E. Dive into our free research report to see why there are better opportunities than VSTS.

Two Business Services Stocks to Watch:

Omnicom Group (OMC)

Market Cap: $26.36 billion

With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE:OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.

Why Could OMC Be a Winner?

1. Annual revenue growth of 8.4% over the last two years beat the sector average and underscores the unique value of its offerings
2. Massive revenue base of $17.27 billion makes it a well-known name that influences purchasing decisions
3. Free cash flow margin grew by 7.2 percentage points over the last five years, giving the company more chips to play with

At $84.91 per share, Omnicom Group trades at 7.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Accenture (ACN)

Market Cap: $132.3 billion

With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE:ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.

Why Does ACN Stand Out?

1. Annual revenue growth of 9.6% over the past five years was outstanding, reflecting market share gains this cycle
2. Enormous revenue base of $70.73 billion provides significant distribution advantages
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Accenture is trading at $213.43 per share, or 15.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.