Business Services’ high dependency on economic activity has made it one of the sectors hardest hit by the coronavirus crisis. The pandemic has significantly disrupted manufacturing and service activities.

However, with the economy reopening and recovering gradually in the second quarter, both manufacturing and non-manufacturing activities have started gathering steam. The demand environment for consulting services has also got healthier.

Notably, economic activity in the manufacturing sector expanded 9.5% from May to June as the PMI measured by Institute of Supply Management (ISM) touched 52.6%. This is the second consecutive month of expansion after April’s contraction that had interrupted an impressive growth rally of 131 consecutive months. Non-manufacturing activities clocked 11.7% growth from May to June as the NMI measured by ISM touched 57.1%. This too ended a two-month period of contraction after 122 straight months of expansion.

However, since the virus outbreak started affecting businesses from the second half of March, its impact is expected be more pronounced in second-quarter results. For this reporting cycle, analysts expect considerable drop in earnings and revenues from the sector. Total earnings of business services companies in the S&P 500 universe are expected to be down 18% on 8.3% lower revenues (read more: These 3 Charts Clearly Tell the Q2 Earnings Season Story).

FIS, VRSK, IT, WU and GDOT in Spotlight

Here we discuss five business services companies, scheduled to report second-quarter 2020 results on Aug 4.

Our quantitative model suggests that the combination of the following two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fidelity National Information Services, Inc.(FIS Quick QuoteFIS - Free Report) : This Florida-based financial service provider is scheduled to release earnings before the bell.

The Zacks Consensus Estimate for revenues is pegged at $2.85 billion, indicating growth of 35.1% from the year-ago quarter's reported figure. The company is likely to have witnessed strong revenue growth as underlying business trends were robust.

The consensus estimate for earnings stands at $1.08, implying a significant year-over-year decline of 39.3%. The company’s bottom-line performance may have been disappointing due to fall in interest rates due to the coronavirus mayhem. Focus on rolling out innovative products in order to meet customers’ rising demand might have inflated expenses.

Fidelity has an Earnings ESP of +4.87% and a Zacks Rank #3. (Read more: Fidelity National to Post Q2 Earnings: A Beat in Store?)

Verisk Analytics, Inc. (VRSK Quick QuoteVRSK - Free Report) : This New Jersey-based provider of data analytics solutions in the United States and internationally is scheduled to report results after market close.

The Zacks Consensus Estimate for revenues stands at $683.56 million, indicating growth of 4.7% from the year-ago reported figure. Strength across Insurance and Energy and Specialized Markets segments is likely to have aided the top line.

The consensus mark for earnings is pegged at $1.18 per share, indicating growth of 7.3% from the year-ago quarter’s reported figure. Solid organic growth and lower share count are expected to have aided the bottom line.

Verisk has an Earnings ESP of -1.70% and a Zacks Rank #2 (Buy). (Read more: Verisk to Report Q2 Earnings: What's in the Cards?)

Gartner, Inc. (IT Quick QuoteIT - Free Report) ): This Connecticut-based research and advisory company is scheduled to report results before market open.

The Zacks Consensus Estimate for revenues is pegged at $940.31 million, indicating a decline of 12.2% from the year-ago quarter's reported figure. The consensus estimate for earnings stands at 79 cents, implying a significant year-over-year decline of 45.5%.

Gartner has an Earnings ESP of +5.43% and a Zacks Rank #4 (Sell). (Read more: Gartner to Report Q2 Earnings: What's in the Cards?)

The Western Union Company(WU Quick QuoteWU - Free Report) : This Colorado-based provider of money movement and payment services is slated to release results after market close.

The Zacks Consensus Estimate for revenues is pegged at $1.09 billion, indicating a decline of 18.6% from the year-ago quarter's reported figure. The consensus estimate for earnings stands at 36 cents, implying a significant year-over-year decline of 20%.

Western Union has an Earnings ESP of -1.41% and a Zacks Rank #2.

Green Dot Corporation (GDOT Quick QuoteGDOT - Free Report) : This California-based financial technology and bank holding company.is slated to release results after market close.

The Zacks Consensus Estimate for revenues is pegged at $238.36 million, indicating a decline of 10.1% from the year-ago quarter's reported figure. The consensus estimate for earnings stands at 31 cents, implying a significant year-over-year decline of 65.6%.

Green Dot has an Earnings ESP of 0.00% and a Zacks Rank #3.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>