Financial News
3 Services Stocks with Exciting Potential
Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. But cutbacks in corporate spending and the threat of new AI products have kept sentiment in check, and over the past six months, the industry has tumbled by 2.8%. This drop was disappointing since the S&P 500 climbed 5.4%.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here are three services stocks boasting durable advantages.
Planet Labs (PL)
Market Cap: $2.02 billion
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
Why Do We Like PL?
- Impressive 21.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Additional sales over the last two years increased its profitability as the 27% annual growth in its earnings per share outpaced its revenue
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Planet Labs’s stock price of $6.67 implies a valuation ratio of 7x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Rumble (RUM)
Market Cap: $2.68 billion
Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ: RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.
Why Are We Fans of RUM?
- Annual revenue growth of 19% over the last two years was superb and indicates its market share increased during this cycle
- Projected revenue growth of 12.6% for the next 12 months suggests its momentum from the last two years will persist
At $7.97 per share, Rumble trades at 19.8x trailing 12-month price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
UL Solutions (ULS)
Market Cap: $13.51 billion
Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE: ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.
Why Do We Watch ULS?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 7.2% annual sales growth over the last two years
- Free cash flow margin jumped by 4.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
UL Solutions is trading at $68 per share, or 36.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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