Back to top

Image: Bigstock

2 Business Services Firms Poised to Beat Estimates This Earnings Season

Read MoreHide Full Article

Reflecting on the second quarter of 2025, the U.S. services sector sustained its expansion, though momentum remained moderate compared with earlier quarters. According to the Bureau of Economic Analysis, real GDP increased at an annual rate of 3.8% during April-June, signaling a notable rebound from the revised 0.6% contraction recorded in the first quarter. This improvement highlighted the economy’s resilience despite a backdrop of persistent inflationary pressures and cautious consumer sentiment.

Growth was largely driven by strong private-sector performance, as real value added surged 10.2% in goods-producing industries and 3.5% in services-producing industries. However, this progress was partially offset by a 3.2% decline in government output.

The services sector’s steady performance underscores the U.S. economy’s adaptability, supported by sustained consumer demand. Service industries, including transportation and warehousing, retail and wholesale trade, utilities, finance, insurance, health care and social assistance, demonstrated resilience and healthy activity by the end of the quarter, benefiting from rising household consumption.

Nevertheless, not all segments moved in unison. Construction, rental and leasing, management of companies and support services, as well as professional, scientific, and technical services, exhibited relative weakness, reflecting higher borrowing costs. Overall, the mixed momentum suggests that while the U.S. services sector continues to anchor economic growth, underlying disparities between industries highlight the economy’s ongoing transition toward a more balanced and sustainable expansion.

Some service providers are set to report their earnings results over the next few weeks. We have picked two stocks, QXO Inc. (QXO - Free Report) and Bitdeer Technologies Group (BTDR - Free Report) , which are well-positioned to beat earnings estimates this season.

Stocks Poised to Beat This Season

With the existence of a number of players in the sector, finding the right business services stocks that have the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes it fairly simple.

You could narrow down the list of choices by looking at stocks that have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise with their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%.

Here are our picks.

QXO is set to report its third-quarter 2025 earnings on Nov. 06, 2025, after the bell.

The Zacks Consensus Estimate for QXO’s earnings for the soon-to-be-reported quarter is pegged at 12 cents per share, indicating an increase of more than 100% year over year. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $2.73 billion, which indicates a rise of more than 100% year over year.

QXO has an Earnings ESP of +1.92% and a Zacks Rank #3.

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

QXO, Inc. Price and EPS Surprise

QXO, Inc. Price and EPS Surprise

QXO, Inc. price-eps-surprise | QXO, Inc. Quote

Bitdeer Technologies is scheduled to declare third-quarter 2025 results on Nov. 11.

The Zacks Consensus Estimate for revenues is set at $161.1 million, indicating a more than 100% surge from the year-ago quarter’s actual. For loss, the consensus mark is pegged at 22 cents per share, whereas it incurred a loss of 35 cents in the year-ago quarter.

BTDR has an Earnings ESP of +27.27% and a Zacks Rank of 3.

Bitdeer Technologies Group Price and EPS Surprise

Bitdeer Technologies Group Price and EPS Surprise

Bitdeer Technologies Group price-eps-surprise | Bitdeer Technologies Group Quote


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Bitdeer Technologies Group (BTDR) - free report >>

QXO, Inc. (QXO) - free report >>

Published in