Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets. These doubts have certainly contributed to services stocks’ recent underperformance - over the past six months, the industry’s 1.6% gain has fallen behind the S&P 500’s 3.9% rise.
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. Taking that into account, here are two resilient services stocks at the top of our wish list and one we’re passing on.
One Business Services Stock to Sell:
EchoStar (SATS)
Market Cap: $35.14 billion
Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ: SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.
Why Should You Sell SATS?
- Sales tumbled by 6.1% annually over the last two years, showing market trends are working against its favor during this cycle
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- Negative EBITDA restricts its access to capital and increases the probability of shareholder dilution if things turn unexpectedly
EchoStar’s stock price of $121.70 implies a valuation ratio of 28.9x forward EV-to-EBITDA. If you’re considering SATS for your portfolio, see our FREE research report to learn more.
Two Business Services Stocks to Watch:
Concentrix (CNXC)
Market Cap: $1.50 billion
With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.
Why Do We Like CNXC?
- Impressive 15.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Economies of scale give it some operating leverage when demand rises
Concentrix is trading at $24.64 per share, or 2.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
WEBTOON (WBTN)
Market Cap: $1.58 billion
Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ: WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.
Why Is WBTN on Our Radar?
- 8.9% annual revenue growth over the last three years surpassed the sector average as its services resonated with customers
- Adjusted operating margin improvement of 8.7 percentage points over the last four years demonstrates its ability to scale efficiently
- Additional sales over the last two years increased its profitability as the 31.9% annual growth in its earnings per share outpaced its revenue
At $11.70 per share, WEBTOON trades at 79.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
