Driven by these positives, investors interested in the industry would do well to focus on stocks like UL Solutions Inc. ULS, Willdan Group, Inc. WLDN and ZipRecruiter ZIP.
About the Industry
The Zacks Business-Services industry includes companies that deliver diverse offerings, such as specialty rentals, supply chain solutions, e-commerce support, technology services, document and data management, digital audience measurement, voice and analytics services and business transformation solutions. The pandemic reshaped how these firms operate and interact with clients. The industry's current emphasis is on streamlining operations through digital transformation, technology integration, data-driven strategies and stronger cybersecurity. Service providers are actively refining their strategic approaches to capitalize on emerging opportunities. This involves reassessing business priorities, pinpointing growth drivers, and targeting specific end markets to remain competitive and agile in a transformed business landscape shaped by evolving client needs.
What's Shaping the Future of the Business Services Industry?
Strong Manufacturing and Service Activities: The sector continues to draw strength from evolving manufacturing and service-driven activities. In June 2026, the Manufacturing PMI, as reported by the Institute for Supply Management, came in at 54%, recording the fifth month of expansion. The Services PMI was 54.5% as of May 2026, recording the 23rd month of expansion.
Demand Stability: Having evolved in a mature and resilient ecosystem, the industry players continue to experience consistent demand for their services. In this AI-driven era, revenues, operating income and cash flows have not only recovered but surpassed previous levels. This financial strength will position most industry players to sustain dividend payouts, reinforcing long-term investor confidence in a structurally sound and future-ready sector.
AI Advancement: The rapid advancement and adoption of artificial intelligence and automation technologies are reshaping the delivery of business services. While these innovations promise enhanced efficiency, cost reduction and faster turnaround times, they also pose challenges such as workforce displacement and the need for constant upskilling. Companies that effectively integrate AI while managing the human impact will likely lead the industry’s future.
Zacks Industry Rank Indicates Solid Near-Term Prospects
The Business-Services industry is housed within the broader Business Services sector. It carries a Zacks Industry Rank #108, which places it in the top 44% of 246 Zacks industries.
The group’s Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and current valuation.
Industry's Price Performance
The Zacks Business Services industry has underperformed the broader sector and the S&P 500 over the past 12 months.
The industry has declined 34.1% against the S&P 500 composite’s growth of 23.9%. The broader sector has declined 18.7% in the said time frame.
One-Year Price Performance
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing business-services stocks, the industry is currently trading at 13.31X compared with the S&P 500’s 21.13X and the sector’s 17.34X.
Over the past five years, the industry has traded as high as 24.58X and as low as 13.18X, with the median being 22.25X, as the charts below show.
Price to Forward 12-Month P/E Ratio
3 Service Stocks to Bet On
We have presented three stocks that are well-positioned to grow in the near term.
UL Solutions: This provider of safety, software and advisory services worldwide expects strong momentum across its global platform in 2026, reflecting the durability and scalability of its operating model.
The company is accelerating organic growth while expanding adjusted EBITDA margins, signaling improving operating leverage. Growth in industrial, consumer, and software and advisory segmental revenues enhances earnings visibility and business stability, while advanced offerings provide a solid runway for future growth.
The company is consistently making investments to boost global revenues while increasing operational efficiency. In 2025, it opened new advanced facilities for battery testing, Heating, Ventilation, and Air Conditioning, heat pump testing, electric motor efficiency testing and wireless, and retail product testing in Germany, Italy, Japan and China. Recently, ULS expanded its ULTRUS software platform with new AI-powered releases, supporting compliance and sustainability goals and helping customers manage regulatory requirements and operationalize sustainable practices.
The Zacks Consensus Estimate for 2026 bottom line has increased 3.2% to $2.26 in the past 60 days.
ULS currently has a Zacks Rank #2 (Buy).
Price and Consensus: ULS
Willdan Group: This provider of technical consulting, engineering, energy efficiency and infrastructure services drives strong growth across its platform, especially due to healthy demand for its energy efficiency and engineering services.
The company continues to win several contracts. These include a two-year extension and an additional $100 million in funding for Southern California Edison's commercial energy efficiency program, a $54 million central plant modernization project for the Dormitory Authority of the State of New York and two additional contracts with National Grid to implement small-business energy efficiency programs across New York City and Long Island during the first quarter of 2026.
These contract wins demonstrate WLDN’s reliability as a partner with public agencies, utilities, government organizations and private-sector clients. Its longstanding relationships with municipal agencies create recurring business opportunities for engineering offerings while positioning WLDN to secure additional contracts funded through infrastructure legislation.
The company’s recent acquisition of Burton Energy Group significantly expands its commercial market presence. In 2025, Burton Energy Group alone generated $103 million in contract revenues, $15 million in net revenues and $7 million in EBITDA. The acquisition has also enhanced Willdan’s presence across the Southeastern and Midwestern United States, boosting revenue volumes and income collectively. WLDN’s GAAP net income increased 82% year over year to 8.5 million, while adjusted EPS climbed 44% year over year to 91 cents from 63 cents a year earlier. The company expects this acquisition to boost earnings, margins and earnings per share in 2026.
WLDN currently has a Zacks Rank #2. The Zacks Consensus Estimate for 2026 bottom line has increased by 8.3% to $4.94 in the past 60 days.
Price and Consensus: WLDN
ZipRecruiter: A highly competitive labor market and complexities of finding talented and skilled individuals required for organizations boost demand for ZIP’s services. The company is likely to benefit from product improvements and technological investments, giving it a strong momentum for future growth.
Recently, the company upgraded ZipIntro, its AI-powered hiring tool, and its resume database to drive faster connections between job seekers and employers by deploying AI-powered suggested screening questions. This upgrade will deliver better performance for ZIP’s enterprise clients by decreasing the vetting time of the candidates from the accepted list. In January 2026, the company launched Be Seen First, a product that enables job seekers to jump to the top of an employer's candidate list. These improvements are likely to impact ZIP’s collective growth.
ZIP carries a Zacks Rank #2. The Zacks Consensus Estimate for 2026 loss per share has narrowed by 50% to 8 cents in the past 60 days.
Price and Consensus: ZIP
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Willdan Group, Inc. (WLDN) : Free Stock Analysis Report
UL Solutions Inc. (ULS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
