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Technological strength, encouraging service activities, and increased adoption and success of the AI-driven software trend enable the Zacks Business - Services industry players to cater to the demand environment.
Driven by these positives, investors interested in the industry would do well to focus on stocks like Thomson Reuters, UL Solutions Inc. and ZipRecruiter.
About the Industry
The Zacks Business-Services industry includes companies that deliver diverse offerings, such as specialty rentals, supply chain solutions, e-commerce support, technology services, document and data management, digital audience measurement, voice and analytics services and business transformation solutions. The pandemic reshaped how these firms operate and interact with clients.
In response, the industry's current emphasis is on streamlining operations through digital transformation, technology integration, data-driven strategies and stronger cybersecurity. As the economy recovers, service providers are actively refining their strategic approaches to capitalize on emerging opportunities. This involves reassessing business priorities, pinpointing growth drivers, and targeting specific end markets to remain competitive and agile in a transformed business landscape.
What's Shaping the Future of the Business Services Industry?
Strong Manufacturing and Service Activities: The sector continues to draw strength from evolving manufacturing and service-driven activities. In March, the Services PMI and Manufacturing PMI, as reported by the Institute for Supply Management, came in at 54% and 52.7%, respectively, recording the 21st month and the third month of expansion.
Demand Stability: Having evolved into a mature and resilient ecosystem, the industry players continue to experience consistent demand for their services. In this post-pandemic era, revenues, operating income and cash flows have not only recovered but surpassed pre-pandemic levels. This financial strength will position most industry players to sustain dividend payouts, reinforcing long-term investor confidence in a structurally sound and future-ready sector.
AI Advancement: The rapid advancement and adoption of artificial intelligence and automation technologies are reshaping how business services are delivered. While these innovations promise enhanced efficiency, cost reduction and faster turnaround times, they also pose challenges such as workforce displacement and the need for constant upskilling. Companies that effectively integrate AI while managing the human impact will likely lead the future of the industry.
Zacks Industry Rank Indicates Weak Near-Term Prospects
The Business-Services industry is housed within the broader Business Services sector. It carries a Zacks Industry Rank #147, which places it in the bottom 40% of 243 Zacks industries.
The group's Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates weak near-term growth 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.
Before we present a few stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and current valuation.
Industry's Price Performance
The Zacks Business Services industry has underperformed the broader sector and the S&P 500 over the past 12 months.
The industry has declined 25.6% against the S&P 500 composite's growth of 32.5%. The broader sector has declined 12.6% in the said time frame.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing business-services stocks, the industry is currently trading at 14.72X compared with the S&P 500's 21.25X and the sector's 17.13X.
Over the past five years, the industry has traded as high as 23.7X and as low as 14.54X, with the median being 18.03X, as the charts below show.
Price to Forward 12-Month P/E Ratio
3 Service Stocks to Bet On
We have presented three stocks that are well-positioned to grow in the near term.
Thomson Reuters: The content and technology company demonstrates consistent momentum and operational discipline. It continues to focus on innovation across its portfolio, highlighted by the successful launch of CoCounsel Legal and CoCounsel for tax, audit and accounting. These advanced AI-driven solutions reflect Thomson Reuters' commitment to integrating its trusted content and deep industry expertise with transformative technology.
By expanding the capabilities of Westlaw and enhancing guided workflows, TRI is strengthening its leadership in professional information services and reaffirming its role as a key enabler of productivity and innovation for legal, tax, and accounting professionals worldwide.
Additionally, the company is also pursuing growth through acquisitions worldwide. In 2025, TRU acquired SafeSand and Additive, both cloud-native and AI automation providers of technology for tax and accounting professionals, to extend its capabilities in its Tax Audit and Accounting segment. During the same time frame, it acquired Imagen Ltd, a cloud-native media asset management company, and TimeBase, a leading provider of Australian legislative solutions, to boost its legal business capabilities globally.
The Zacks Consensus Estimate for 2026 bottom line has increased nearly 1.1% to $4.40 in the past 60 days.
UL Solutions Inc.: This provider of safety, software and advisory services worldwide expects strong momentum across its global platform in 2026, reflecting the durability and scalability of its operating model.
The company is accelerating organic growth while expanding adjusted EBITDA margins, signaling improving operating leverage. Growth in industrial, consumer, and software and advisory segmental revenues enhances earnings visibility and business stability, while advanced offerings provide a solid runway for future growth.
The company is consistently making investments to boost global revenues while increasing operational efficiency. In 2025, it opened new advanced facilities for battery testing, Heating, Ventilation, and Air Conditioning, heat pump testing, electric motor efficiency testing and wireless, and retail product testing in Germany, Italy, Japan and China. Recently, ULS expanded its ULTRUS software platform with new AI-powered releases, supporting compliance and sustainability goals and helping customers manage regulatory requirements and operationalize sustainable practices.
ULS currently has a Zacks Rank #2. The Zacks Consensus Estimate for 2026 bottom line has increased by 5.85% to $2.17 in the past 60 days.
ZipRecruiter: This recruitment platform service provider demonstrates sustainable strength in an ever-evolving job market. A highly competitive labor market and complexities of finding talented and skilled individuals required for organizations boost demand for ZIP's services. The company is likely to benefit from product improvements and technological investments, giving it a strong momentum for future growth.
Recently, the company upgraded ZipIntro, its AI-powered hiring tool, and its resume database to drive faster connections between job seekers and employers by deploying AI-powered suggested screening questions. This upgrade will deliver better performance for ZIP's enterprise clients by decreasing the vetting time of the candidates from the accepted list. In January 2026, the company launched Be Seen First, a product that enables job seekers to jump to the top of an employer's candidate list. These improvements are likely to impact ZIP's collective growth.
ZIP carries a Zacks Rank #2. The Zacks Consensus Estimate for 2026 loss per share has narrowed by 56.8% to 16 cents in the past 60 days.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights Thomson Reuters, UL Solutions and ZipRecruiter
For Immediate Release
Chicago, IL – April 10, 2026 – Today, Zacks Equity Research discusses Thomson Reuters (TRI - Free Report) , UL Solutions Inc. (ULS - Free Report) and ZipRecruiter (ZIP - Free Report) .
Industry: Business Services
Link: https://www.zacks.com/commentary/2897494/3-business-services-stocks-to-consider-amid-industry-woes
Technological strength, encouraging service activities, and increased adoption and success of the AI-driven software trend enable the Zacks Business - Services industry players to cater to the demand environment.
Driven by these positives, investors interested in the industry would do well to focus on stocks like Thomson Reuters, UL Solutions Inc. and ZipRecruiter.
About the Industry
The Zacks Business-Services industry includes companies that deliver diverse offerings, such as specialty rentals, supply chain solutions, e-commerce support, technology services, document and data management, digital audience measurement, voice and analytics services and business transformation solutions. The pandemic reshaped how these firms operate and interact with clients.
In response, the industry's current emphasis is on streamlining operations through digital transformation, technology integration, data-driven strategies and stronger cybersecurity. As the economy recovers, service providers are actively refining their strategic approaches to capitalize on emerging opportunities. This involves reassessing business priorities, pinpointing growth drivers, and targeting specific end markets to remain competitive and agile in a transformed business landscape.
What's Shaping the Future of the Business Services Industry?
Strong Manufacturing and Service Activities: The sector continues to draw strength from evolving manufacturing and service-driven activities. In March, the Services PMI and Manufacturing PMI, as reported by the Institute for Supply Management, came in at 54% and 52.7%, respectively, recording the 21st month and the third month of expansion.
Demand Stability: Having evolved into a mature and resilient ecosystem, the industry players continue to experience consistent demand for their services. In this post-pandemic era, revenues, operating income and cash flows have not only recovered but surpassed pre-pandemic levels. This financial strength will position most industry players to sustain dividend payouts, reinforcing long-term investor confidence in a structurally sound and future-ready sector.
AI Advancement: The rapid advancement and adoption of artificial intelligence and automation technologies are reshaping how business services are delivered. While these innovations promise enhanced efficiency, cost reduction and faster turnaround times, they also pose challenges such as workforce displacement and the need for constant upskilling. Companies that effectively integrate AI while managing the human impact will likely lead the future of the industry.
Zacks Industry Rank Indicates Weak Near-Term Prospects
The Business-Services industry is housed within the broader Business Services sector. It carries a Zacks Industry Rank #147, which places it in the bottom 40% of 243 Zacks industries.
The group's Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates weak near-term growth 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.
Before we present a few stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and current valuation.
Industry's Price Performance
The Zacks Business Services industry has underperformed the broader sector and the S&P 500 over the past 12 months.
The industry has declined 25.6% against the S&P 500 composite's growth of 32.5%. The broader sector has declined 12.6% in the said time frame.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing business-services stocks, the industry is currently trading at 14.72X compared with the S&P 500's 21.25X and the sector's 17.13X.
Over the past five years, the industry has traded as high as 23.7X and as low as 14.54X, with the median being 18.03X, as the charts below show.
Price to Forward 12-Month P/E Ratio
3 Service Stocks to Bet On
We have presented three stocks that are well-positioned to grow in the near term.
Thomson Reuters: The content and technology company demonstrates consistent momentum and operational discipline. It continues to focus on innovation across its portfolio, highlighted by the successful launch of CoCounsel Legal and CoCounsel for tax, audit and accounting. These advanced AI-driven solutions reflect Thomson Reuters' commitment to integrating its trusted content and deep industry expertise with transformative technology.
By expanding the capabilities of Westlaw and enhancing guided workflows, TRI is strengthening its leadership in professional information services and reaffirming its role as a key enabler of productivity and innovation for legal, tax, and accounting professionals worldwide.
Additionally, the company is also pursuing growth through acquisitions worldwide. In 2025, TRU acquired SafeSand and Additive, both cloud-native and AI automation providers of technology for tax and accounting professionals, to extend its capabilities in its Tax Audit and Accounting segment. During the same time frame, it acquired Imagen Ltd, a cloud-native media asset management company, and TimeBase, a leading provider of Australian legislative solutions, to boost its legal business capabilities globally.
The Zacks Consensus Estimate for 2026 bottom line has increased nearly 1.1% to $4.40 in the past 60 days.
TRI currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
UL Solutions Inc.: This provider of safety, software and advisory services worldwide expects strong momentum across its global platform in 2026, reflecting the durability and scalability of its operating model.
The company is accelerating organic growth while expanding adjusted EBITDA margins, signaling improving operating leverage. Growth in industrial, consumer, and software and advisory segmental revenues enhances earnings visibility and business stability, while advanced offerings provide a solid runway for future growth.
The company is consistently making investments to boost global revenues while increasing operational efficiency. In 2025, it opened new advanced facilities for battery testing, Heating, Ventilation, and Air Conditioning, heat pump testing, electric motor efficiency testing and wireless, and retail product testing in Germany, Italy, Japan and China. Recently, ULS expanded its ULTRUS software platform with new AI-powered releases, supporting compliance and sustainability goals and helping customers manage regulatory requirements and operationalize sustainable practices.
ULS currently has a Zacks Rank #2. The Zacks Consensus Estimate for 2026 bottom line has increased by 5.85% to $2.17 in the past 60 days.
ZipRecruiter: This recruitment platform service provider demonstrates sustainable strength in an ever-evolving job market. A highly competitive labor market and complexities of finding talented and skilled individuals required for organizations boost demand for ZIP's services. The company is likely to benefit from product improvements and technological investments, giving it a strong momentum for future growth.
Recently, the company upgraded ZipIntro, its AI-powered hiring tool, and its resume database to drive faster connections between job seekers and employers by deploying AI-powered suggested screening questions. This upgrade will deliver better performance for ZIP's enterprise clients by decreasing the vetting time of the candidates from the accepted list. In January 2026, the company launched Be Seen First, a product that enables job seekers to jump to the top of an employer's candidate list. These improvements are likely to impact ZIP's collective growth.
ZIP carries a Zacks Rank #2. The Zacks Consensus Estimate for 2026 loss per share has narrowed by 56.8% to 16 cents in the past 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.