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4 Business Services Stocks That More Than Doubled This Year
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Looking back at 2023, we see that it was the year of gradual strengthening of the economy, boosting service activities. While service activities remained in good shape through the year, their positive impacts on the sector were partially offset by contracting economic activity in the manufacturing sector.
Fed’s decision for a third consecutive pause on interest rate hikes since July acted as a tailwind for the Business Services sector. The sector is currently balancing between growth in services pertaining to transportation & warehousing, retail, wholesale, finance & insurance, health care & social assistance, rental & leasing, education and weakness in information, mining, and professional, scientific & technical Services.
2023 Trends That Should Prevail in 2024
With service activities remaining in good shape, the demand for business services is expected to continue rising. Notably, the Services PMI measured by the Institute for Supply Management has recorded the 11th consecutive month of expansion in November. It registered 52.7%, increasing 0.9 percentage points from October’s reading of 51.8%.
Companies that have established successful work-from-home models are focused on digital transformation and have witnessed demand for their services going up or staying constant in the post-pandemic business environment have performed significantly well this year. With digitization and remote working becoming parts of the new normal, these companies are poised to continue their stellar performance in 2024.
4 Business Services Stocks That Warrant a Look
Here, we have picked four Business Services stocks with Zacks Rank #1 (Strong Buy) or #2 (Buy) that have gained more than 100% in 2023 and have witnessed upward estimate revisions in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Limbach Holdings, Inc. (LMB - Free Report) : This integrated building systems solutions company is benefiting from the strong performance of the Owner Direct Relationships segment, offsetting continued softness in the General Contractor Relationships. Owner Direct Relationships revenues in the quarter are being driven by the company’s continued focus on increasing the segment’s contribution to the business.
Owner Direct Relationships revenues increased 10.3% year over year in the third quarter of 2023. General Contractor Relationships revenues stayed flat.
Shares of Limbach have rallied a massive 315.1% year to date. The Zacks Consensus Estimate for the 2023 bottom line has been revised 28.7% north in the past 60 days. The company currently sports a Zacks Rank #1.
Limbach Holdings, Inc. Price, Consensus and EPS Surprise
Duolingo, Inc. (DUOL - Free Report) : This operator of mobile learning platform is currently reaping the benefits of product improvements, cost discipline and creative marketing efforts.
The company’s daily and monthly average users increased 63% and 47%, respectively, year over year, in the third quarter of 2023. Number of subscribers increased 60% year over year. All these led to a 43% year-over-year increase in revenues in the quarter. Adjusted EPS came in at 6 cents compared with a loss of 46 cents in the year-ago quarter.
The Zacks Consensus Estimate for the company’s 2023 earnings is currently pegged at 25 cents, having moved from a loss of 9 cents over the past 60 days. This Zacks Rank #1 stock has appreciated a whopping 225.4% this year.
Palantir Technologies Inc. (PLTR - Free Report) : This software platform developer is benefiting from healthy business from existing as well as new customers, strengthening both the Government and Commercial segments. The Government segment revenues grew 12% and the Commercial segment revenues surged 33% year over year in the third quarter of 2023.
The Zacks Consensus Estimate for the company’s 2023 earnings is currently pegged at 25 cents, having moved up 8.7% over the past 60 days. This Zacks Rank #1 stock has appreciated a whopping 183.5% this year.
Palantir Technologies Inc. Price, Consensus and EPS Surprise
Nu Holdings Ltd. (NU - Free Report) : This provider of digital banking platforms and digital financial services is currently benefiting from strong customer growth, higher levels of customer monetization and a low-cost operating platform. The company’s revenues increased 63.5% and earnings surged more than 100% year over year in the third quarter of 2023.
Shares of NU have rallied 103.9% year to date. The Zacks Consensus Estimate for the 2023 bottom line has been revised 4.8% north in the past 60 days. The company carries a Zacks Rank #2 at present.
Nu Holdings Ltd. Price, Consensus and EPS Surprise
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4 Business Services Stocks That More Than Doubled This Year
Looking back at 2023, we see that it was the year of gradual strengthening of the economy, boosting service activities. While service activities remained in good shape through the year, their positive impacts on the sector were partially offset by contracting economic activity in the manufacturing sector.
Fed’s decision for a third consecutive pause on interest rate hikes since July acted as a tailwind for the Business Services sector. The sector is currently balancing between growth in services pertaining to transportation & warehousing, retail, wholesale, finance & insurance, health care & social assistance, rental & leasing, education and weakness in information, mining, and professional, scientific & technical Services.
2023 Trends That Should Prevail in 2024
With service activities remaining in good shape, the demand for business services is expected to continue rising. Notably, the Services PMI measured by the Institute for Supply Management has recorded the 11th consecutive month of expansion in November. It registered 52.7%, increasing 0.9 percentage points from October’s reading of 51.8%.
Companies that have established successful work-from-home models are focused on digital transformation and have witnessed demand for their services going up or staying constant in the post-pandemic business environment have performed significantly well this year. With digitization and remote working becoming parts of the new normal, these companies are poised to continue their stellar performance in 2024.
4 Business Services Stocks That Warrant a Look
Here, we have picked four Business Services stocks with Zacks Rank #1 (Strong Buy) or #2 (Buy) that have gained more than 100% in 2023 and have witnessed upward estimate revisions in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Limbach Holdings, Inc. (LMB - Free Report) : This integrated building systems solutions company is benefiting from the strong performance of the Owner Direct Relationships segment, offsetting continued softness in the General Contractor Relationships. Owner Direct Relationships revenues in the quarter are being driven by the company’s continued focus on increasing the segment’s contribution to the business.
Owner Direct Relationships revenues increased 10.3% year over year in the third quarter of 2023. General Contractor Relationships revenues stayed flat.
Shares of Limbach have rallied a massive 315.1% year to date. The Zacks Consensus Estimate for the 2023 bottom line has been revised 28.7% north in the past 60 days. The company currently sports a Zacks Rank #1.
Limbach Holdings, Inc. Price, Consensus and EPS Surprise
Limbach Holdings, Inc. price-consensus-eps-surprise-chart | Limbach Holdings, Inc. Quote
Duolingo, Inc. (DUOL - Free Report) : This operator of mobile learning platform is currently reaping the benefits of product improvements, cost discipline and creative marketing efforts.
The company’s daily and monthly average users increased 63% and 47%, respectively, year over year, in the third quarter of 2023. Number of subscribers increased 60% year over year. All these led to a 43% year-over-year increase in revenues in the quarter. Adjusted EPS came in at 6 cents compared with a loss of 46 cents in the year-ago quarter.
The Zacks Consensus Estimate for the company’s 2023 earnings is currently pegged at 25 cents, having moved from a loss of 9 cents over the past 60 days. This Zacks Rank #1 stock has appreciated a whopping 225.4% this year.
Duolingo, Inc. Price, Consensus and EPS Surprise
Duolingo, Inc. price-consensus-eps-surprise-chart | Duolingo, Inc. Quote
Palantir Technologies Inc. (PLTR - Free Report) : This software platform developer is benefiting from healthy business from existing as well as new customers, strengthening both the Government and Commercial segments. The Government segment revenues grew 12% and the Commercial segment revenues surged 33% year over year in the third quarter of 2023.
The Zacks Consensus Estimate for the company’s 2023 earnings is currently pegged at 25 cents, having moved up 8.7% over the past 60 days. This Zacks Rank #1 stock has appreciated a whopping 183.5% this year.
Palantir Technologies Inc. Price, Consensus and EPS Surprise
Palantir Technologies Inc. price-consensus-eps-surprise-chart | Palantir Technologies Inc. Quote
Nu Holdings Ltd. (NU - Free Report) : This provider of digital banking platforms and digital financial services is currently benefiting from strong customer growth, higher levels of customer monetization and a low-cost operating platform. The company’s revenues increased 63.5% and earnings surged more than 100% year over year in the third quarter of 2023.
Shares of NU have rallied 103.9% year to date. The Zacks Consensus Estimate for the 2023 bottom line has been revised 4.8% north in the past 60 days. The company carries a Zacks Rank #2 at present.
Nu Holdings Ltd. Price, Consensus and EPS Surprise
Nu Holdings Ltd. price-consensus-eps-surprise-chart | Nu Holdings Ltd. Quote