5 Stocks to Buy Amid Growing Strength in the Business Services Sector

Zacks highlights five "Buy"-rated business services stocks—DUOL, CTAS, STN, TRI, and FCFS—that have shown double-digit returns in the last three months, supported by a strong U.S. economy and a sector ranked in the top 25% by Zacks. Duolingo (DUOL) leads with expected revenue and earnings growth of 33.4% and 55.3% respectively, while Cintas (CTAS) benefits from product expansion and acquisitions, projecting 7% revenue and 10.8% earnings growth; Stantec (STN), Thomson Reuters (TRI), and FirstCash Holdings (FCFS) are also expected to see growth.

Analysis

The U.S. Business Services Sector is demonstrating robust health, supported by strong domestic economic fundamentals, with key financial metrics such as revenues, income, and cash flows now exceeding pre-pandemic levels. According to Zacks, this sector ranks in the top 25% of its Sector Rank and is anticipated to outperform the broader market over the next three to six months. The analysis highlights five specific companies within this sector—Duolingo (DUOL), Cintas (CTAS), Stantec (STN), Thomson Reuters (TRI), and FirstCash Holdings (FCFS)—all carrying a Zacks Rank #2 (Buy) and having achieved double-digit returns in the past three months. Duolingo exhibits particularly strong growth prospects, with expected revenue and earnings growth of 33.4% and 55.3% respectively for the current year, and its consensus earnings estimate has risen 10.2% in the last 60 days. Cintas is projected to achieve 7% revenue and 10.8% earnings growth (for the year ending May 2026), driven by product expansion, acquisitions like Paris Uniform and SITEX, and robust demand; its earnings estimate has improved by 1.9% in 60 days. Stantec forecasts 11.1% revenue and 19.5% earnings growth, with a 3.2% upward revision in current-year earnings estimates over the last 30 days. Thomson Reuters anticipates more modest growth, with revenue and earnings projected at 3.2% and 4.2% respectively, and a 1.3% increase in its earnings estimate over 60 days. FirstCash Holdings presents a mixed outlook with an expected revenue decline of -0.2% but strong earnings growth of 17.3%, its earnings estimate having risen 2.7% in the past 60 days, reflecting its focus on cash and credit-constrained consumers. The overall sentiment for the sector and these stocks is strongly positive, underscored by upward earnings estimate revisions across the board.

Key Decisions for Investors

• Investors should consider overweighting exposure to the Business Services sector given its strong fundamentals, top-tier Zacks ranking, and expectation of market outperformance in the near to medium term.
• Focus on companies with superior growth profiles and positive earnings estimate revisions, such as Duolingo (DUOL) with its significant revenue and earnings growth forecasts, and Cintas (CTAS) benefiting from strategic acquisitions and strong demand.