We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 IT Services Stocks to Buy Right Now From a Prospering Industry
Read MoreHide Full Article
The Zacks Computers – IT Services industry participants like Vertiv (VRT - Free Report) , Jack Henry & Associates (JKHY - Free Report) and Genpact (G - Free Report) have been benefiting from ongoing digitization efforts globally. Robust spending on cloud, Internet of Things (IoT), cyber security, data and analytics, artificial intelligence (AI) and automation is driving industry-wide growth. Solid demand for advanced IT-service infrastructure solutions for hybrid working and digital healthcare has been benefiting the prospects of industry participants. Improving IT spending trends bode well for these players. However, industry players are suffering from challenging macroeconomic conditions that are elongating the sales cycle. The adoption of consultation and transaction processing solutions has been affected by an uncertain macro environment. Higher tariffs are expected to hurt prospects.
Industry Description
The Zacks Computers – IT Services industry comprises companies that provide consultancy, communications software and services, IT management and operations, cloud-based web development platform, customer relationship management, professional information solutions, real estate information and analysis, and outsourcing services. Industry participants cater to a wide array of end markets, including manufacturing, telecommunications, banking, insurance, healthcare, government agencies and public sector institutions. They focus on the cybersecurity business, the cloud computing market, generative AI, IoT and automation to bolster prospects. Offerings from industry participants help improve engagement with customers, launch products and support new business models, with enterprises going for digital transformation.
What's Shaping the Future of the Computers - IT Services Industry
Digitization Wave is a Tailwind: Most industry participants are modernizing their traditional legacy-oriented business processes to keep pace with evolving IT services. The aim is to integrate the coordination of emerging technologies, including cloud, IoT, AI and analytics. Increasing Internet penetration in emerging markets, particularly across the Asia Pacific, is another tailwind.
Hybrid Work Environment to Boost Prospects: The industry’s growth is expected to accelerate in the days ahead due to an increasing number of hybrid workers. In this era of digital transformation, enterprises are actively seeking a common ground between on-premise and cloud infrastructures, which will enable them to provide flexible and easily adaptable hybrid solutions.
Improving IT Spending to Aid Prospects: Improving IT spending trends bode well for industry participants. Gartner projects IT spending to increase 9.8% over 2025’s estimated figure of $5.54 trillion to $6.08 trillion in 2026. Spending on IT services is expected to see an 8.7% improvement for 2026.
Zacks Industry Rank Indicates Bullish Prospects
The Zacks Computers - IT Services is housed within the broader Zacks Computer and Technology Sector. It currently carries a Zacks Industry Rank #85, which places it in the top 35% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bullish 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 a result of a positive earnings outlook for the constituent companies in aggregate. The aggregate earnings estimate revisions show that analysts are optimistic about this group’s earnings growth potential. Since Nov. 30, 2025, the industry’s earnings estimate for the current year has increased by a couple of cents.
Given the industry’s bullish prospects, there are several stocks worth buying. But before we present the 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 picture.
Industry Lags Sector and S&P 500
The Zacks Computers - IT Services Industry has underperformed the S&P 500 and the broader Zacks Computer and Technology sector in the past year.
The industry has dropped 23.6% over this period compared with the S&P 500’s and the broader sector’s return of 22.7% and 34.1%, respectively.
One-Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month price/earnings, which is a commonly used multiple for valuing IT Services companies, the industry is currently trading at 19.48X, higher than the S&P 500’s 21.57X but lower than the sector’s 24.06X.
Over the past five years, the industry has traded as high as 39.71X and as low as 19.48X, with the median being 28.27X, as the charts below show.
Vertiv is benefiting from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions, which is noteworthy. The company is also benefiting from the accelerating digital transformation driven by AI and data center demand. For 2026, revenues are now expected to be between $13.25 billion and $13.75 billion. Organic net sales growth is expected to be between 27% and 29%.
The Zacks Consensus Estimate for VRT’s 2026 earnings is pegged at $6.15 per share, down a couple of cents over the past 30 days. The figure indicates 46.4% growth from the figure reported in the year-ago quarter.
Price and Consensus: VRT
Jack Henry & Associates: This Zacks Rank #2 company is benefiting from growing services, support and processing revenues. The rise in data processing and hosting fees is contributing well. Strength in its card processing solutions due to expanding transaction volumes is a plus. Growing payment processing and digital revenues are major upsides. Strong momentum across the Core, Payments, Complementary and Corporate segments is positively impacting its top-line growth. Shares of Jack Henry & Associates dropped 5.3% in a year.
The Zacks Consensus Estimate for Jack Henry & Associates’ 2026 earnings has increased by 4 cents to $6.58 per share over the past 30 days. The figure suggests 5.5% growth from the figure reported in the year-ago quarter.
Price and Consensus: JKHY
Genpact: This Zacks Rank #2 company is benefiting from strong AI-driven growth. Genpact’s focus on integrating process, analytics and digital technologies, along with its deep domain expertise, is helping it acquire customers. The company’s Digital Smart Enterprise Process (SEP) is a patented approach to enhance the performance of clients’ business processes using AI. Digital SEPs decrease inefficiency and improve process quality using AI, advanced domain-specific digital technologies, Lean Six Sigma methodologies, and experience-centric principles.
For 2026, the consensus mark for earnings has increased by three cents to $4.01 per share, which suggests 9.9% growth from the figure reported in the year-ago quarter. Genpact shares have decreased 24.1% in a year.
Price and Consensus: G
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Shutterstock
3 IT Services Stocks to Buy Right Now From a Prospering Industry
The Zacks Computers – IT Services industry participants like Vertiv (VRT - Free Report) , Jack Henry & Associates (JKHY - Free Report) and Genpact (G - Free Report) have been benefiting from ongoing digitization efforts globally. Robust spending on cloud, Internet of Things (IoT), cyber security, data and analytics, artificial intelligence (AI) and automation is driving industry-wide growth. Solid demand for advanced IT-service infrastructure solutions for hybrid working and digital healthcare has been benefiting the prospects of industry participants. Improving IT spending trends bode well for these players. However, industry players are suffering from challenging macroeconomic conditions that are elongating the sales cycle. The adoption of consultation and transaction processing solutions has been affected by an uncertain macro environment. Higher tariffs are expected to hurt prospects.
Industry Description
The Zacks Computers – IT Services industry comprises companies that provide consultancy, communications software and services, IT management and operations, cloud-based web development platform, customer relationship management, professional information solutions, real estate information and analysis, and outsourcing services. Industry participants cater to a wide array of end markets, including manufacturing, telecommunications, banking, insurance, healthcare, government agencies and public sector institutions. They focus on the cybersecurity business, the cloud computing market, generative AI, IoT and automation to bolster prospects. Offerings from industry participants help improve engagement with customers, launch products and support new business models, with enterprises going for digital transformation.
What's Shaping the Future of the Computers - IT Services Industry
Digitization Wave is a Tailwind: Most industry participants are modernizing their traditional legacy-oriented business processes to keep pace with evolving IT services. The aim is to integrate the coordination of emerging technologies, including cloud, IoT, AI and analytics. Increasing Internet penetration in emerging markets, particularly across the Asia Pacific, is another tailwind.
Hybrid Work Environment to Boost Prospects: The industry’s growth is expected to accelerate in the days ahead due to an increasing number of hybrid workers. In this era of digital transformation, enterprises are actively seeking a common ground between on-premise and cloud infrastructures, which will enable them to provide flexible and easily adaptable hybrid solutions.
Improving IT Spending to Aid Prospects: Improving IT spending trends bode well for industry participants. Gartner projects IT spending to increase 9.8% over 2025’s estimated figure of $5.54 trillion to $6.08 trillion in 2026. Spending on IT services is expected to see an 8.7% improvement for 2026.
Zacks Industry Rank Indicates Bullish Prospects
The Zacks Computers - IT Services is housed within the broader Zacks Computer and Technology Sector. It currently carries a Zacks Industry Rank #85, which places it in the top 35% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bullish 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 a result of a positive earnings outlook for the constituent companies in aggregate. The aggregate earnings estimate revisions show that analysts are optimistic about this group’s earnings growth potential. Since Nov. 30, 2025, the industry’s earnings estimate for the current year has increased by a couple of cents.
Given the industry’s bullish prospects, there are several stocks worth buying. But before we present the 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 picture.
Industry Lags Sector and S&P 500
The Zacks Computers - IT Services Industry has underperformed the S&P 500 and the broader Zacks Computer and Technology sector in the past year.
The industry has dropped 23.6% over this period compared with the S&P 500’s and the broader sector’s return of 22.7% and 34.1%, respectively.
One-Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month price/earnings, which is a commonly used multiple for valuing IT Services companies, the industry is currently trading at 19.48X, higher than the S&P 500’s 21.57X but lower than the sector’s 24.06X.
Over the past five years, the industry has traded as high as 39.71X and as low as 19.48X, with the median being 28.27X, as the charts below show.
Price/Earnings (F12M)
3 IT Services Stocks to Buy Right Now
Vertiv: This Zacks Rank #2 (Buy) company’s shares have jumped 212.7% in the trailing 12-month period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vertiv is benefiting from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions, which is noteworthy. The company is also benefiting from the accelerating digital transformation driven by AI and data center demand. For 2026, revenues are now expected to be between $13.25 billion and $13.75 billion. Organic net sales growth is expected to be between 27% and 29%.
The Zacks Consensus Estimate for VRT’s 2026 earnings is pegged at $6.15 per share, down a couple of cents over the past 30 days. The figure indicates 46.4% growth from the figure reported in the year-ago quarter.
Price and Consensus: VRT
Jack Henry & Associates: This Zacks Rank #2 company is benefiting from growing services, support and processing revenues. The rise in data processing and hosting fees is contributing well. Strength in its card processing solutions due to expanding transaction volumes is a plus. Growing payment processing and digital revenues are major upsides. Strong momentum across the Core, Payments, Complementary and Corporate segments is positively impacting its top-line growth. Shares of Jack Henry & Associates dropped 5.3% in a year.
The Zacks Consensus Estimate for Jack Henry & Associates’ 2026 earnings has increased by 4 cents to $6.58 per share over the past 30 days. The figure suggests 5.5% growth from the figure reported in the year-ago quarter.
Price and Consensus: JKHY
For 2026, the consensus mark for earnings has increased by three cents to $4.01 per share, which suggests 9.9% growth from the figure reported in the year-ago quarter. Genpact shares have decreased 24.1% in a year.
Price and Consensus: G
