OMC - Top 5 Business Services Stocks to Strengthen Your Portfolio | Benzinga
The U.S. Business Services space has been benefiting from the strong fundamentals of the economy. Despite facing a record-high interest rate, a sticky inflation rate and extremely tight monetary control by the Fed, this sector has provided double-digit returns year to date.
Industries within this sector are mature, with demand for services in good shape. Revenues, income and cash flows are anticipated to gradually reach the pre-pandemic levels, aiding most industry players to pay out stable dividends.
The pandemic has changed the way industry players conduct business and deliver services. The industry's key focus is currently on channeling money and efforts toward more effective operational components, such as technology, digital transformation, data-driven decision-making and enhanced cybersecurity.
To position themselves suitably in the post-pandemic era and better utilize the opportunities that the economic recovery will bring, service providers are increasing their efforts toward formulating and reassessing strategic initiatives and targeting end markets.
The stuffing industry has been benefiting from a resilient labor market. The industry has been increasingly leveraging technology to streamline processes, enhance efficiency, and provide better services. Utilizing tech-driven recruitment methods such as AI, social media, and Big Data are on the rise.
Higher talent costs due to a competitive talent market have been a headwind for the industry. However, growing immigration is helping service providers thrive with the increased flow of foreign talent.
Our Top Picks
We have narrowed our search to five business services stocks with strong growth potential for the rest of 2024. ...