Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. Furthermore, the demand for their offerings is rising as more clients outsource non-core functions, a trend that has enabled the industry to return 8.7% over the past six months, almost identical to the S&P 500.
Although these companies have produced results, only a handful will thrive over the long term as AI-driven upstarts are rapidly taking share from the incumbents. Keeping that in mind, here are two services stocks boasting durable advantages and one we’re passing on.
One Business Services Stock to Sell:
PAR Technology (PAR)
Market Cap: $1.38 billion
Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology (NYSE:PAR) provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.
Why Are We Hesitant About PAR?
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Negative returns on capital show that some of its growth strategies have backfired
- 14× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $34.75 per share, PAR Technology trades at 92.2x forward P/E. Check out our free in-depth research report to learn more about why PAR doesn’t pass our bar.
Two Business Services Stocks to Watch:
CECO Environmental (CECO)
Market Cap: $2.36 billion
With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.
Why Will CECO Outperform?
- Impressive 19% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
CECO Environmental’s stock price of $66.23 implies a valuation ratio of 51.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Mirion (MIR)
Market Cap: $6.02 billion
With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE:MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.
Why Is MIR Interesting?
- Annual revenue growth of 11.8% over the last five years was superb and indicates its market share increased during this cycle
- Operating margin expanded by 6.2 percentage points over the last five years as it scaled and became more efficient
- Additional sales over the last two years increased its profitability as the 29.1% annual growth in its earnings per share outpaced its revenue
Mirion is trading at $26.54 per share, or 47.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.