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3 Stocks to Buy From the Thriving Computer-Services Industry
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The Zacks Computer - Services industry participants like PDF Solutions (PDFS - Free Report) , WidePoint (WYY - Free Report) and Forian (FORA - Free Report) are riding on the ongoing digital transformation, which is increasing the demand for cloud-enabled software solutions. The growing adoption of digital transformative techniques in healthcare and financial services has been a silver lining for industry participants. The growing need for consulting, research and cybersecurity solutions, stringent regulations, digital healthcare and the growing adoption of business automation solutions are likely to continue driving the industry’s prospects. However, industry participants continue to face broader macroeconomic challenges, including higher tariffs that have resulted in an elongated sales cycle, lower conversion rates and customer delays in making purchase decisions.
Industry Description
The Zacks Computer - Services industry primarily comprises companies that offer cloud and software-based solutions. Their offerings include consulting and research solutions, security solutions, business support solutions and systems engineering, as well as software application development solutions. The industry participants cater to varied end markets and customers, including intelligence, defense, U.S. government agencies, communications, banking, financial services, insurance, healthcare, and media and entertainment. Consultancy companies in the industry are helping clients in their ongoing digital transformation. They provide end-to-end services, including application development, integration and maintenance, technology infrastructure management and business process services.
3 Computer-Services Industry Trends to Watch
Remote & Hybrid Work Trends Boost Prospects: The industry’s growth is expected to accelerate in the days ahead based on an increasing number of remote and hybrid workers. In this era of digital transformation, enterprises are actively seeking a common ground between on-premise and cloud infrastructures, enabling them to provide flexible and easily adaptable hybrid solutions. The growing remote-working trend has led to increased demand for cloud and cost-efficient business support solutions, as well as other digital monetization solutions, which bode well for the industry.
Growing Cyber Attacks Are Creating a Tailwind: The increasing number of cyberattacks and related security risks are expected to keep the industry’s momentum alive. Government agencies are ideal targets for cyberattacks, as they are entrusted with sensitive information. Therefore, the growing need for cybersecurity solutions and services in critical areas like defense, intelligence and civilian agencies of the U.S. government bodes well for industry players.
Regulatory Compliance Drives Demand: Companies in this industry are likely to benefit from increasingly complex network systems and sensitive information environments in which governments and businesses operate. Industry participants are keeping pace with global regulatory and business practice requirements, thereby helping customers incorporate the best practices while complying with governmental and industry norms.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Computer – Services industry is housed within the broader Zacks Computer and Technology sector. It currently carries a Zacks Industry Rank #47, which places it in the top 19% of more than 244 Zacks industries.
The group’s Zacks 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.
The industry’s position in the top 50% of the Zacks-ranked industries is the result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since March 31, 2025, the Zacks Consensus Estimate for the industry’s 2026 earnings has moved north by 7.7%.
Given the bullish industry outlook, there are a number of stocks worth buying currently. But before we present those stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation.
Industry Lags Sector and S&P 500
The Zacks Computer – Services industry has underperformed the broader Zacks Computer and Technology sector and the S&P 500 Index over the past year.
The industry has risen 10.7% over this period compared with the S&P 500’s appreciation of 19.7% and the broader sector’s return of 27.6%.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month price/earnings (P/E), which is a commonly used multiple for valuing computer services stocks, we see that the industry is currently trading at 16.85X compared with the S&P 500’s 23.51X and the sector’s forward 12-month P/E of 27.94X.
Over the last five years, the industry has traded as high as 18.23X and as low as 15.91X, with a median of 16.8X, as the charts below show.
Forward 12-Month Price-to-Earnings (P/E) Ratio
3 Computer-Services Stocks to Buy Right Now
PDF Solutions: This Zacks Rank #2 (Buy) company provides data solutions that help enterprises across semiconductor and electronics ecosystems to improve the yield and quality of their products and operational efficiency. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PDF Solutions is benefiting from growing complexity in semiconductor manufacturing processes and increasing investments in 3D manufacturing in front-end fabs and packaging facilities, as well as product design. Increasing geographic diversification of manufacturing locations is driving up the demand for AI-driven collaboration that is necessary to enable cost-effective and efficient manufacturing. PDFS is benefiting from this trend thanks to the secureWISE network, Sapience orchestration products and Exensio AI solutions.
The company’s data analytics platform, Exensio, continues to gain traction and integration of Intel’s Tiber AI Studio is expected to drive further adoption. Tiber AI Studio enablesengineers to build and manage hundreds of thousands of AI models. The integration with Exensio's existing ModelOps will help engineers to use Exensio to both train models and deploy them. PDFS is benefiting from strong contributions to revenues from SecureWISE and Cimetrix connectivity and control software.
The Zacks Consensus Estimate for PDFS’ 2025 earnings is pegged at 83 cents per share, unchanged over the past 30 days. The consensus mark for 2026 earnings is pegged at $1.08 per share, steady over the past 30 days. PDF Solutions stock has appreciated 19.8% in a year.
Price and Consensus: PDFS
WidePoint: This Zacks Rank #2 company provides Technology Management as a Service (TMaaS) that consists of federally certified communications management and identity management solutions. WYY also provides interactive bill presentment and analytics, and Information Technology (IT) as a Service (ITaaS) solution.
WidePoint’s expanding addressable market, currently worth $36 billion and growing and includes federal, state and local governments and commercial enterprises, is a key catalyst. Increased demand for remote work and rising cybersecurity threats bode well for WYY’s prospects. The company’s integrated solution that comprises Identity & Access Management, Managed Mobility and Data Analytics is expected to drive top-line growth.
The Zacks Consensus Estimate for WYY’s 2025 loss has been steady at 20 cents per share over the past 30 days. The consensus mark for 2026 earnings is pegged at 23 cents per share, unchanged over the past 30 days. The stock has surged 73% in the trailing 12-month period.
Price and Consensus: WYY
Forian: This Zacks Rank #2 company offers data science-driven information and analytics solutions to the life science, healthcare and financial services industries. Forian’s top-line growth is benefiting from the Kyber Data Science acquisition and the continued expansion in health economics and outcomes research projects.
Forian expects 2025 revenues between $28 million and $30 million, suggesting 39-40% from 2024. Adjusted EBITDA is expected to be between negative $1 million and positive $1 million.
The Zacks Consensus Estimate for Forian’s 2025 earnings has been steady at 7 cents per share over the past 30 days. The consensus mark for 2026 earnings is pegged at 9 cents per share, unchanged over the past 30 days. The stock has returned 0.0% in a year.
Price and Consensus: FORA
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3 Stocks to Buy From the Thriving Computer-Services Industry
The Zacks Computer - Services industry participants like PDF Solutions (PDFS - Free Report) , WidePoint (WYY - Free Report) and Forian (FORA - Free Report) are riding on the ongoing digital transformation, which is increasing the demand for cloud-enabled software solutions. The growing adoption of digital transformative techniques in healthcare and financial services has been a silver lining for industry participants. The growing need for consulting, research and cybersecurity solutions, stringent regulations, digital healthcare and the growing adoption of business automation solutions are likely to continue driving the industry’s prospects. However, industry participants continue to face broader macroeconomic challenges, including higher tariffs that have resulted in an elongated sales cycle, lower conversion rates and customer delays in making purchase decisions.
Industry Description
The Zacks Computer - Services industry primarily comprises companies that offer cloud and software-based solutions. Their offerings include consulting and research solutions, security solutions, business support solutions and systems engineering, as well as software application development solutions. The industry participants cater to varied end markets and customers, including intelligence, defense, U.S. government agencies, communications, banking, financial services, insurance, healthcare, and media and entertainment. Consultancy companies in the industry are helping clients in their ongoing digital transformation. They provide end-to-end services, including application development, integration and maintenance, technology infrastructure management and business process services.
3 Computer-Services Industry Trends to Watch
Remote & Hybrid Work Trends Boost Prospects: The industry’s growth is expected to accelerate in the days ahead based on an increasing number of remote and hybrid workers. In this era of digital transformation, enterprises are actively seeking a common ground between on-premise and cloud infrastructures, enabling them to provide flexible and easily adaptable hybrid solutions. The growing remote-working trend has led to increased demand for cloud and cost-efficient business support solutions, as well as other digital monetization solutions, which bode well for the industry.
Growing Cyber Attacks Are Creating a Tailwind: The increasing number of cyberattacks and related security risks are expected to keep the industry’s momentum alive. Government agencies are ideal targets for cyberattacks, as they are entrusted with sensitive information. Therefore, the growing need for cybersecurity solutions and services in critical areas like defense, intelligence and civilian agencies of the U.S. government bodes well for industry players.
Regulatory Compliance Drives Demand: Companies in this industry are likely to benefit from increasingly complex network systems and sensitive information environments in which governments and businesses operate. Industry participants are keeping pace with global regulatory and business practice requirements, thereby helping customers incorporate the best practices while complying with governmental and industry norms.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Computer – Services industry is housed within the broader Zacks Computer and Technology sector. It currently carries a Zacks Industry Rank #47, which places it in the top 19% of more than 244 Zacks industries.
The group’s Zacks 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.
The industry’s position in the top 50% of the Zacks-ranked industries is the result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since March 31, 2025, the Zacks Consensus Estimate for the industry’s 2026 earnings has moved north by 7.7%.
Given the bullish industry outlook, there are a number of stocks worth buying currently. But before we present those stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation.
Industry Lags Sector and S&P 500
The Zacks Computer – Services industry has underperformed the broader Zacks Computer and Technology sector and the S&P 500 Index over the past year.
The industry has risen 10.7% over this period compared with the S&P 500’s appreciation of 19.7% and the broader sector’s return of 27.6%.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month price/earnings (P/E), which is a commonly used multiple for valuing computer services stocks, we see that the industry is currently trading at 16.85X compared with the S&P 500’s 23.51X and the sector’s forward 12-month P/E of 27.94X.
Over the last five years, the industry has traded as high as 18.23X and as low as 15.91X, with a median of 16.8X, as the charts below show.
Forward 12-Month Price-to-Earnings (P/E) Ratio
3 Computer-Services Stocks to Buy Right Now
PDF Solutions: This Zacks Rank #2 (Buy) company provides data solutions that help enterprises across semiconductor and electronics ecosystems to improve the yield and quality of their products and operational efficiency. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PDF Solutions is benefiting from growing complexity in semiconductor manufacturing processes and increasing investments in 3D manufacturing in front-end fabs and packaging facilities, as well as product design. Increasing geographic diversification of manufacturing locations is driving up the demand for AI-driven collaboration that is necessary to enable cost-effective and efficient manufacturing. PDFS is benefiting from this trend thanks to the secureWISE network, Sapience orchestration products and Exensio AI solutions.
The company’s data analytics platform, Exensio, continues to gain traction and integration of Intel’s Tiber AI Studio is expected to drive further adoption. Tiber AI Studio enablesengineers to build and manage hundreds of thousands of AI models. The integration with Exensio's existing ModelOps will help engineers to use Exensio to both train models and deploy them. PDFS is benefiting from strong contributions to revenues from SecureWISE and Cimetrix connectivity and control software.
The Zacks Consensus Estimate for PDFS’ 2025 earnings is pegged at 83 cents per share, unchanged over the past 30 days. The consensus mark for 2026 earnings is pegged at $1.08 per share, steady over the past 30 days. PDF Solutions stock has appreciated 19.8% in a year.
Price and Consensus: PDFS
WidePoint: This Zacks Rank #2 company provides Technology Management as a Service (TMaaS) that consists of federally certified communications management and identity management solutions. WYY also provides interactive bill presentment and analytics, and Information Technology (IT) as a Service (ITaaS) solution.
WidePoint’s expanding addressable market, currently worth $36 billion and growing and includes federal, state and local governments and commercial enterprises, is a key catalyst. Increased demand for remote work and rising cybersecurity threats bode well for WYY’s prospects. The company’s integrated solution that comprises Identity & Access Management, Managed Mobility and Data Analytics is expected to drive top-line growth.
The Zacks Consensus Estimate for WYY’s 2025 loss has been steady at 20 cents per share over the past 30 days. The consensus mark for 2026 earnings is pegged at 23 cents per share, unchanged over the past 30 days. The stock has surged 73% in the trailing 12-month period.
Price and Consensus: WYY
Forian: This Zacks Rank #2 company offers data science-driven information and analytics solutions to the life science, healthcare and financial services industries. Forian’s top-line growth is benefiting from the Kyber Data Science acquisition and the continued expansion in health economics and outcomes research projects.
Forian expects 2025 revenues between $28 million and $30 million, suggesting 39-40% from 2024. Adjusted EBITDA is expected to be between negative $1 million and positive $1 million.
The Zacks Consensus Estimate for Forian’s 2025 earnings has been steady at 7 cents per share over the past 30 days. The consensus mark for 2026 earnings is pegged at 9 cents per share, unchanged over the past 30 days. The stock has returned 0.0% in a year.
Price and Consensus: FORA
