Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. These firms have helped their customers unlock huge efficiencies, so it’s no surprise the industry has posted a 7.7% gain over the past six months, nearly mirrorring the S&P 500.
Nevertheless, investors should tread carefully as many companies in this space are cyclical due to their reliance on corporate spending budgets. Taking that into account, here are three services stocks we think can generate sustainable market-beating returns.
EPAM (EPAM)
Market Cap: $5.09 billion
Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE: EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.
Why Does EPAM Stand Out?
- Annual revenue growth of 14.8% over the past five years was outstanding, reflecting market share gains this cycle
- Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 12.2% annually
- Industry-leading 22.3% return on capital demonstrates management’s skill in finding high-return investments
EPAM’s stock price of $97.06 implies a valuation ratio of 7.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Omnicom Group (OMC)
Market Cap: $21.42 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 Will OMC Beat the Market?
- Annual revenue growth of 15.4% over the past two years was outstanding, reflecting market share gains this cycle
- Massive revenue base of $19.82 billion makes it a well-known name that influences purchasing decisions
- Free cash flow margin increased by 6.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $75.52 per share, Omnicom Group trades at 6.5x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
RB Global (RBA)
Market Cap: $19.46 billion
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
Why Do We Like RBA?
- Impressive 26.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Adjusted operating margin improvement of 2.6 percentage points over the last five years demonstrates its ability to scale efficiently
- Earnings per share grew by 19.1% annually over the last five years and trumped its peers
RB Global is trading at $104.44 per share, or 22.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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.
