Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. 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. Keeping that in mind, here are three services stocks boasting durable advantages.
Planet Labs (PL)
Market Cap: $8.37 billion
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
Why Should You Buy PL?
- Impressive 23.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability
- Rising returns on capital show the company is starting to reap the benefits of its past investments
Planet Labs’s stock price of $24.81 implies a valuation ratio of 875.1x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Grid Dynamics (GDYN)
Market Cap: $701.3 million
With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics (NASDAQ: GDYN) provides technology consulting, engineering, and analytics services to help large enterprises modernize their technology systems and business processes.
Why Are We Positive On GDYN?
- Annual revenue growth of 29.1% over the past five years was outstanding, reflecting market share gains this cycle
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 22.2% annually
- Improving returns on capital suggest its past investments are beginning to deliver value
At $8.31 per share, Grid Dynamics trades at 19.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
QuinStreet (QNST)
Market Cap: $754.2 million
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Are We Backing QNST?
- Impressive 40.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Additional sales over the last two years increased its profitability as the 320% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
QuinStreet is trading at $13.30 per share, or 11.1x 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
heck out the high-quality names we’ve flagged 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
