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3 Business Services Stocks Poised to Beat Estimates This Earnings Season
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The U.S. services sector maintained its expansionary momentum in October 2026, supported by sustained business activity and healthy demand conditions. According to the Institute for Supply Management (ISM), the Services PMI registered 54.5% in October compared with 54.9% in September. Although the reading moderated slightly, it remained comfortably above the 50% threshold separating expansion from contraction.
According to the latest data from the Bureau of Economic Analysis, real GDP rose at an annualized rate of 3.4% in July-September 2026, up from 2.2% in the second quarter. Stronger investment and consumer spending, alongside increased government expenditures, contributed to the economy's expansion despite lingering inflationary pressures and global trade uncertainties.
The services sector continued to demonstrate resilience, although performance varied across industries. The ISM New Orders Index remained in expansionary territory at 55.9% in October, while the Employment Index improved to 51.4%. Nevertheless, elevated input costs remained a concern, with the Prices Index standing at 73%, highlighting persistent inflationary pressures on service providers.
Overall, the continued expansion in economic activity underscores the services sector's importance in supporting U.S. growth. Increasing demand for technology-enabled solutions, information services and specialized business operations is creating opportunities for select companies, even as cost pressures and uneven industry conditions remain challenges.
Several service-oriented companies are scheduled to report their quarterly financial results in the coming weeks. We have identified three stocks — NIQ Global Intelligence (NIQ - Free Report) , Casella Waste Systems (CWST - Free Report) and ESCO Technologies (ESE - Free Report) — that have the right combination of factors to potentially surpass earnings expectations this season.
Stocks Poised to Beat This Season
With numerous companies operating across the broader business services landscape, identifying stocks that are likely to deliver positive earnings surprises can be challenging. Our proprietary methodology, however, helps investors narrow their choices.
Investors can identify potential earnings outperformers by focusing on stocks with a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold). The Earnings ESP Filter can help investors screen for such opportunities ahead of quarterly announcements.
Earnings ESP measures the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that stocks with this favorable combination have historically demonstrated a likelihood of delivering an earnings beat as high as 70%.
Here are our picks.
NIQ Global Intelligence has an Earnings ESP of +5.93% and a Zacks Rank #2. The company is scheduled to report its third-quarter 2026 results on Nov. 12. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for revenues is pegged at $1.1 billion, indicating year-over-year growth of 5.7%. For earnings, the consensus mark is pegged at 24 cents per share, implying a substantial 700% increase from the year-ago quarter's actual. NIQ surpassed the consensus estimate in two of the trailing four quarters and missed twice, recording an average earnings surprise of 1.9%.
NIQ Global Intelligence plc Price and EPS Surprise
Casella Waste Systems has an Earnings ESP of +0.36% and a Zacks Rank #3. The company is scheduled to declare its third-quarter 2026 results on Nov. 9.
The Zacks Consensus Estimate for revenues is pinned at $560.6 million, suggesting a 15.5% increase from the year-ago quarter's actual. The consensus estimate for earnings stands at 36 cents per share, indicating a 14.3% decline from the year-ago reported figure. Casella Waste Systems has an impressive surprise history, having surpassed the consensus estimate in each of the trailing four quarters, delivering an average beat of 52%.
Casella Waste Systems, Inc. Price and EPS Surprise
ESCO Technologies has an Earnings ESP of +0.96% and a Zacks Rank #3. The company is slated to announce its fourth-quarter fiscal 2026 results on Nov. 19.
The Zacks Consensus Estimate for revenues is pegged at $375.4 million, implying 6.5% growth from the year-ago quarter's actual. For earnings, the consensus mark stands at $2.59 per share, suggesting an 11.6% year-over-year increase. ESCO Technologies surpassed the consensus estimate for earnings by 3.8% in the preceding quarter.
View the Zacks #1 Rank List
Image: Shutterstock
3 Business Services Stocks Poised to Beat Estimates This Earnings Season
The U.S. services sector maintained its expansionary momentum in October 2026, supported by sustained business activity and healthy demand conditions. According to the Institute for Supply Management (ISM), the Services PMI registered 54.5% in October compared with 54.9% in September. Although the reading moderated slightly, it remained comfortably above the 50% threshold separating expansion from contraction.
According to the latest data from the Bureau of Economic Analysis, real GDP rose at an annualized rate of 3.4% in July-September 2026, up from 2.2% in the second quarter. Stronger investment and consumer spending, alongside increased government expenditures, contributed to the economy's expansion despite lingering inflationary pressures and global trade uncertainties.
The services sector continued to demonstrate resilience, although performance varied across industries. The ISM New Orders Index remained in expansionary territory at 55.9% in October, while the Employment Index improved to 51.4%. Nevertheless, elevated input costs remained a concern, with the Prices Index standing at 73%, highlighting persistent inflationary pressures on service providers.
Overall, the continued expansion in economic activity underscores the services sector's importance in supporting U.S. growth. Increasing demand for technology-enabled solutions, information services and specialized business operations is creating opportunities for select companies, even as cost pressures and uneven industry conditions remain challenges.
Several service-oriented companies are scheduled to report their quarterly financial results in the coming weeks. We have identified three stocks — NIQ Global Intelligence (NIQ - Free Report) , Casella Waste Systems (CWST - Free Report) and ESCO Technologies (ESE - Free Report) — that have the right combination of factors to potentially surpass earnings expectations this season.
Stocks Poised to Beat This Season
With numerous companies operating across the broader business services landscape, identifying stocks that are likely to deliver positive earnings surprises can be challenging. Our proprietary methodology, however, helps investors narrow their choices.
Investors can identify potential earnings outperformers by focusing on stocks with a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold). The Earnings ESP Filter can help investors screen for such opportunities ahead of quarterly announcements.
Earnings ESP measures the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that stocks with this favorable combination have historically demonstrated a likelihood of delivering an earnings beat as high as 70%.
Here are our picks.
NIQ Global Intelligence has an Earnings ESP of +5.93% and a Zacks Rank #2. The company is scheduled to report its third-quarter 2026 results on Nov. 12. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for revenues is pegged at $1.1 billion, indicating year-over-year growth of 5.7%. For earnings, the consensus mark is pegged at 24 cents per share, implying a substantial 700% increase from the year-ago quarter's actual. NIQ surpassed the consensus estimate in two of the trailing four quarters and missed twice, recording an average earnings surprise of 1.9%.
NIQ Global Intelligence plc Price and EPS Surprise
NIQ Global Intelligence plc price-eps-surprise | NIQ Global Intelligence plc Quote
Casella Waste Systems has an Earnings ESP of +0.36% and a Zacks Rank #3. The company is scheduled to declare its third-quarter 2026 results on Nov. 9.
The Zacks Consensus Estimate for revenues is pinned at $560.6 million, suggesting a 15.5% increase from the year-ago quarter's actual. The consensus estimate for earnings stands at 36 cents per share, indicating a 14.3% decline from the year-ago reported figure. Casella Waste Systems has an impressive surprise history, having surpassed the consensus estimate in each of the trailing four quarters, delivering an average beat of 52%.
Casella Waste Systems, Inc. Price and EPS Surprise
Casella Waste Systems, Inc. price-eps-surprise | Casella Waste Systems, Inc. Quote
ESCO Technologies has an Earnings ESP of +0.96% and a Zacks Rank #3. The company is slated to announce its fourth-quarter fiscal 2026 results on Nov. 19.
The Zacks Consensus Estimate for revenues is pegged at $375.4 million, implying 6.5% growth from the year-ago quarter's actual. For earnings, the consensus mark stands at $2.59 per share, suggesting an 11.6% year-over-year increase. ESCO Technologies surpassed the consensus estimate for earnings by 3.8% in the preceding quarter.
ESCO Technologies Inc. Price and EPS Surprise
ESCO Technologies Inc. price-eps-surprise | ESCO Technologies Inc. Quote