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Buy 5 Technology Services Stocks to Strengthen Your Portfolio
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Key Takeaways
The Technology Services industry ranks in the top 40% and is expected to outperform in the coming months.
Digital trends like AI, cloud, and blockchain are fueling rising demand for enterprise tech solutions.
COHR, VMEO, SKIL, VNT and SPXC boast strong earnings outlooks and business potential.
The Zacks-defined Technology Services industry currently ranks within the top 40% of Zacks Ranked Industries. Consequently, we expect it to outperform the market over the next three to six months. The technology services industry is mature, with demand for services in good shape. As a result, the industry flourished in the first half of 2025. The momentum is also likely to continue in the second half.
The global shift toward digitization creates opportunities in various markets, including 5G, blockchain and artificial intelligence (AI). Companies are adopting generative AI, machine language (ML), blockchain and data science faster to gain a competitive advantage.
The business software industry is gaining from robust demand for multi-cloud-enabled software solutions, given the ongoing transition from legacy platforms to modern cloud-based infrastructure.
Industry players are incorporating AI and ML into their applications for more dynamic and result-oriented outcomes. Elevated demand for enterprise software, which is ramping up productivity and improving the decision-making process, is a key catalyst.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Coherent Corp.
Zacks Rank #1 Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. COHR delivers diversified applications for the industrial, communications, electronics and instrumentation markets. COHR also offers research and development, manufacturing, sales, service and distribution facilities. COHR operates through three segments, namely, Networking, Materials and Lasers.
Coherent has an expected revenue and earnings growth rate of 11.5% and 29.3%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last 30 days.
Vimeo Inc.
Zacks Rank #1 Vimeo provides video software solutions in the United States and internationally. VMEO provides turnkey cloud-based solutions, including video hosting and management, intuitive video creation and editing, insightful analytics, artificial intelligence language translations, and enterprise tools.
VMEO also offers tools through a software-as-a-service model, including video creation, collaboration, distribution, hosting, marketing, monetization, and analytics features. VMEO serves its services to small-to-midsize businesses, larger enterprises, marketers, agencies, filmmakers, and creative professionals.
Vimeo has an expected revenue and earnings growth rate of 6.2% and more than 100%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has remained the same over the last 60 days.
Skillsoft Corp.
Zacks Rank #1 Skillsoft provides personalized, interactive learning experiences, and enterprise-ready solutions in the United States, Other Americas, Europe, the Middle East, Africa, and the Asia-Pacific. SKIL operates in two segments, Talent Development Solutions and Global Knowledge. The Talent Development Solutions segment offers an AI-led, interactive, and multi-modal experience technology learning brand, as well as outcome-based learning through benchmarks, enterprise-grade security and integrations.
The Global Knowledge segment provides virtual, in-classroom, and on-demand training solutions geared at foundational, practitioner, and expert information technology professionals. SKIL markets and sells its products to enterprises, government agencies, and educational institutions.
Skillsoft has an expected revenue and earnings growth rate of 1.2% and -157%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 54.8% over the last 60 days.
Vontier Corp.
Zacks Rank #2 Vontier is a technology company. VNT is focused on transportation and mobility solutions. VNT’s portfolio of brands includes expertise in mobility technologies, retail and commercial fueling, fleet management, telematics, vehicle diagnostics and repair and smart cities end-markets. VNT operates through three segments, namely, Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions.
Vontier has an expected revenue and earnings growth rate of 0.1% and 9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the last seven days.
SPX Technologies Inc.
Zacks Rank #2 SPX Technologies is a diversified supplier of highly engineered products and technologies, holding positions in the HVAC and detection and measurement markets. SPXC operates in two segments, HVAC and Detection and Measurement. SPXC markets its products through independent manufacturing representatives, third-party distributors and retailers.
SPX Technologies has an expected revenue and earnings growth rate of 12.7% and 17%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.2% over the last seven days.
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Buy 5 Technology Services Stocks to Strengthen Your Portfolio
Key Takeaways
The Zacks-defined Technology Services industry currently ranks within the top 40% of Zacks Ranked Industries. Consequently, we expect it to outperform the market over the next three to six months. The technology services industry is mature, with demand for services in good shape. As a result, the industry flourished in the first half of 2025. The momentum is also likely to continue in the second half.
We recommend five technology services stocks with a favorable Zacks Rank to strengthen your portfolio. These stocks are: Coherent Corp. (COHR - Free Report) , Vimeo Inc. (VMEO - Free Report) , Skillsoft Corp. (SKIL - Free Report) , Vontier Corp. (VNT - Free Report) and SPX Technologies Inc. (SPXC - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Technology Services Industry Flourishing
The global shift toward digitization creates opportunities in various markets, including 5G, blockchain and artificial intelligence (AI). Companies are adopting generative AI, machine language (ML), blockchain and data science faster to gain a competitive advantage.
The business software industry is gaining from robust demand for multi-cloud-enabled software solutions, given the ongoing transition from legacy platforms to modern cloud-based infrastructure.
Industry players are incorporating AI and ML into their applications for more dynamic and result-oriented outcomes. Elevated demand for enterprise software, which is ramping up productivity and improving the decision-making process, is a key catalyst.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Coherent Corp.
Zacks Rank #1 Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. COHR delivers diversified applications for the industrial, communications, electronics and instrumentation markets. COHR also offers research and development, manufacturing, sales, service and distribution facilities. COHR operates through three segments, namely, Networking, Materials and Lasers.
Coherent has an expected revenue and earnings growth rate of 11.5% and 29.3%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last 30 days.
Vimeo Inc.
Zacks Rank #1 Vimeo provides video software solutions in the United States and internationally. VMEO provides turnkey cloud-based solutions, including video hosting and management, intuitive video creation and editing, insightful analytics, artificial intelligence language translations, and enterprise tools.
VMEO also offers tools through a software-as-a-service model, including video creation, collaboration, distribution, hosting, marketing, monetization, and analytics features. VMEO serves its services to small-to-midsize businesses, larger enterprises, marketers, agencies, filmmakers, and creative professionals.
Vimeo has an expected revenue and earnings growth rate of 6.2% and more than 100%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has remained the same over the last 60 days.
Skillsoft Corp.
Zacks Rank #1 Skillsoft provides personalized, interactive learning experiences, and enterprise-ready solutions in the United States, Other Americas, Europe, the Middle East, Africa, and the Asia-Pacific. SKIL operates in two segments, Talent Development Solutions and Global Knowledge. The Talent Development Solutions segment offers an AI-led, interactive, and multi-modal experience technology learning brand, as well as outcome-based learning through benchmarks, enterprise-grade security and integrations.
The Global Knowledge segment provides virtual, in-classroom, and on-demand training solutions geared at foundational, practitioner, and expert information technology professionals. SKIL markets and sells its products to enterprises, government agencies, and educational institutions.
Skillsoft has an expected revenue and earnings growth rate of 1.2% and -157%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 54.8% over the last 60 days.
Vontier Corp.
Zacks Rank #2 Vontier is a technology company. VNT is focused on transportation and mobility solutions. VNT’s portfolio of brands includes expertise in mobility technologies, retail and commercial fueling, fleet management, telematics, vehicle diagnostics and repair and smart cities end-markets. VNT operates through three segments, namely, Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions.
Vontier has an expected revenue and earnings growth rate of 0.1% and 9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the last seven days.
SPX Technologies Inc.
Zacks Rank #2 SPX Technologies is a diversified supplier of highly engineered products and technologies, holding positions in the HVAC and detection and measurement markets. SPXC operates in two segments, HVAC and Detection and Measurement. SPXC markets its products through independent manufacturing representatives, third-party distributors and retailers.
SPX Technologies has an expected revenue and earnings growth rate of 12.7% and 17%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.2% over the last seven days.