The business services sector is starting to stand out among the Zacks Rank #1 (Strong Buy) list with 19 stocks in the space receiving strong buy ratings.
Several of these highly ranked business services sector stocks hail from the Zacks Technology Services Industry which is in the top 30% of approximately 250 Zacks industries. Furthermore, now appears to be an ideal time to invest in two of these technology services companies after launching IPOs in recent years.
Sofi Technologies SOFI
Trading under $10, Sofi Technologies stock is very enticing given its expansion as a consumer-focused financial platform. Going public in 2021, Sofi is becoming one of the most diverse fintech players in the United States with its offerings including loans, credit cards, investing, insurance, and banking services.
More importantly, Sofi is on the cusp of turning a profit with fiscal 2024 earnings now projected at $0.09 per share compared to an adjusted loss of -$0.36 a share last year. Plus, FY25 EPS is expected to soar another 182% to $0.26.
Sofi’s rapid top-line expansion also supports its future earnings potential with total sales forecasted to rise 18% this year and expected to climb another 14% in FY25 to $2.81 billion.
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Qifu Technology QFIN
Launching its IPO last year, Qifu Technology is one of the dominant fintech players in China. As a credit tech platform Qifu provides a comprehensive suite of technology services to assist financial institutions, consumers, and enterprises in the loan life cycle.
Notably, Qifu’s stock has soared nearly +60% year to date to impressively top the broader indexes and largely outperform Chinese tech giants Alibaba BABA and Baidu BIDU which are down -8% and -35% respectively.
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Investor interest in Qifu has swooned as the company is already profitable with annual earnings expected to soar 34% in FY24 to $4.94 per share versus EPS of $3.68 in 2023. Even better, FY25 EPS is projected to rise another 4%. Further indicating more upside in Qifu’s stock is that earnings estimate revisions for FY24 and FY25 have spiked over the last 60 days.
Better still, Qifu's stock trades under $30 at just 5X forward earnings compared to the S&P 500’s 23.7X with Alibaba at 8X and Baidu at 10.1X.
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Bottom Line
Like Qifu, earnings estimate revisions have remained higher for Sofi as well. Given their strengthening outlook, this makes now an ideal time to buy stock in these up-and-coming technology services companies as they are shaping up to be viable investments for 2024 and beyond.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Qifu Technology, Inc. (QFIN) : Free Stock Analysis Report
SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report
Baidu, Inc. (BIDU) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
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