Top U.S. Services Sector Stocks to Explore Long-Term

U.S. stock markets saw some upside after many big companies released strong earnings reports. Investor sentiment should improve as the market recovers.

Notably, the US services sector rebounded in July, with new orders rising steadily, as revealed by the Institute for Supply Management (ISM) survey.

Service sector stocks like ACN, DXC, INTU, SPGI and ABNB might be worth exploring. Here we explore ten stocks with Kalkine Media® in the services sector and assess their performance over the recent period:


  1. Accenture plc (NYSE:ACN)

Dublin-based Accenture is an Irish-American professional services firm focused on IT services and consulting.

The company recently collaborated with the telecommunications company Swisscom to work on a climate. Implementation of the strategy is expected to reduce Swisscom customer emissions by one million carbons by 2025.

In its third quarter fiscal 2022 earnings report, Accenture recorded revenue of US$16.2 billion compared to US$13.26 billion in the corresponding quarter of the previous year. The results for the third quarter of 2022, published on June 23, 2022, report operating income of $2.6 billion.


  1. DXC technology (NYSE: DXC)

DXC Technology is an American multinational IT services and consulting company with a market capitalization of US$6 billion.

In the first quarter of 2023, the technology company recorded revenue of $3.71 billion. Meanwhile, diluted earnings per share were $0.43 in the first quarter of 2023.

Shares of DXC fell more than 18% the next day on its first quarter 2023 earnings results. DXC stock fell below 21% this year as it fell more than 32% in one year to the next.


  1. Intuit Inc. (NASDAQ: INTU)

The American enterprise software company has a market capitalization of US$131.53 billion. Intuit is expected to announce its fourth quarter fiscal 2022 results on August 23, 2022.

Intuit Inc. reported revenue of US$5,632 million in the third quarter of 2022, compared to US$4,173 million in the third quarter of 2021. Its net income in the third quarter of 2022 was US$1,794 million, while it was US$1,464 million in the same quarter of 2021. The company had an annual dividend rate of US$2.72.


  1. S&P Global Inc. (NYSE: SPGI)

S&P Global is an American credit rating company among the three largest credit rating companies in the world.

S&P Global has a market cap of $128.44 billion and pays a quarterly dividend of $0.85 per share. SPGI stock has jumped more than 9% in the past month.

The company reported revenue of $2,993 million in the second quarter of 2022, compared to $2,106 million in the second quarter of 2021. Its net profit in the second quarter of 2022 jumped 23% to $1,051 million compared to the corresponding quarter of the previous year at 857 million dollars.

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  1. Moody’s Corporation (NYSE: MCO)

Moody’s Corporation, headquartered in New York, is an American business and financial services company, which is also the holding company for Moody’s Investors Services.

Moody’s reported revenue of $1,381 million in the second quarter of fiscal 2022, compared to $1,553 million in the year-ago quarter. Operating profit in the quarter reported in 2022 was US$508 million, compared to US$801 in the same period in 2021.

Moody’s shares have fallen below 6% in the past six months. MCO stock plunged more than 19% year-on-year.


  1. Airbnb Inc. (NASDAQ: ABNB)

A major player in the travel industry, Airbnb is an American company operating a popular online marketplace for tourist accommodation, homestays, vacation rentals and other tourism-related services.

The San Francisco, California-based company has a market capitalization of US$75.87 billion. Airbnb announced its second-quarter results for fiscal 2022 on Aug. 2 and said its total assets were $17.82 billion.

The company reported revenue of $2.11 billion in the second quarter of 2022, compared to $1.33 billion in the second quarter of 2021.

ABNB’s stock has fallen below 30% in 2022. Over the past month, it has climbed more than 24%.


  1. Twitter Inc. (NYSE: TWTR)

Twitter stock has been on a roller coaster since Elon Musk’s takeover deal. The giant social media company, based in San Francisco, California, has a market capitalization of US$31.42 billion.

Twitter is now embroiled in a legal battle with Tesla chief Elon Musk over the latter’s withdrawal from the $44 billion takeover deal. Twitter shares fell below 3.75% in 2022.

Twitter posted revenue of $1.17 billion in the second quarter of fiscal 2022, compared to $1.19 billion in the second quarter of 2021.


  1. Equifax, Inc. (NYSE:EFX)

The American credit rating company with a global presence has a market capitalization of US$26.16 billion.

Equifax shares have fallen 16% over the past year. However, its price has climbed nearly 15% in the past month.

On July 21, Equifax announced that it had signed a definitive agreement to acquire LawLogix, a leading provider of cloud-based I-9 software.

Despite a slowdown in the mortgage market, it recorded revenue of $1.317 billion in the second quarter of 2022, up 7% from the year-ago quarter.

Top 10 US services stocks to watch in August: ABNB to ACN, to SPGI Source: ©Kalkine Media®; © Canva Creative Studio via Canva.com


  1. Kelly Services, Inc. (NASDAQ: KELYA)

American office staffing company with a global footprint, Kelly Services, is headquartered in Troy, Michigan. It provides employees at all levels in various industries, from financial services to IT and law.

The US$815.22 million market cap company has more than 7,000 employees worldwide. Its annual dividend rate is $0.30 and earnings per share (EPS) is $2.04.

KELYA stock jumped more than 20% in 2022. In its first quarter results, Kelly Services reported services revenue of US$1,296.4 million, compared to US$1,205.9 million at the same time. quarter a year earlier.


  1. TransUnion (NYSE: TRU)

Part of the triumvirate with Equifax, TransUnion is another US news agency that operates globally. Chicago, Illinois-based TransUnion has a market valuation of US$15.30 billion.

TransUnion reported total revenue of US$948 million in the second quarter of fiscal 2022, an increase of 30% over the same quarter a year earlier at US$728 million.

TransUnion shares have fallen more than 31% this year. Over the past month, TRU stock has fallen 3.4%.

At the end of the line:

Services stocks, as we have seen, posted mixed results. It is difficult for investors to choose stocks in such a situation. And when the markets are volatile, traders are already in retreat. The services sector may have an increasing chance of weathering the winds of recession and generating returns. Investors should exercise due diligence in selecting stocks to invest in when the market is uncertain and volatile.

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