3 Technology Services Stocks to Watch From a Promising Industry – Yahoo Finance

The Zacks Technology Services industry seeks to benefit from the ongoing digitization, increasing dependency on technology and initiatives to diversify technology services. Growth opportunities from robust adoption of the multi-cloud model should offset challenges arising from cyber threats and expenditures related to hiring skillful talent and restructuring initiatives.
IQVIA Holdings Inc. IQV, Matterport, Inc. MTTR and TuSimple Holdings Inc. TSP are some stocks, which are likely to gain from the abovementioned industry trends.
Industry Description
The Zacks Technology Services industry comprises companies that are engaged in manufacturing, developing and designing an array of software support, data processing, computing hardware and communications equipment. These include integrated powertrain technologies, advanced analytics, technology solutions and contract research services, semiconductor packaging and interconnect technologies, collaboration software, specialty printers, and data acquisition and analysis systems. The industry includes consumer as well as business-oriented products and services. It comprises companies with diversified end-markets and customer base. Some industry participants also provide advanced analytics, clinical research services, data storage technology and solutions, and technology-enabled financial solutions to consumers, small business owners.
What’s Shaping the Future of the Technology Services Industry?
Remote & Hybrid Work Model Trends Boost Prospects:The industry’s growth is expected to accelerate in the days ahead based on an increasing number of remote and hybrid workers. In this era of digital transformation, enterprises are actively seeking a common ground between on-premise and cloud infrastructures, enabling them to provide flexible, as well as easily adaptable hybrid solutions. The coronavirus-induced remote-working trend has led to increased demand for cloud and cost-efficient business support solutions, as well as other digital monetization solutions, which bode well for the industry.
Digitization Wave is a Tailwind: Most industry participants are in the process of modernizing their traditional legacy-oriented business processes to keep themselves updated with evolving IT services. The aim is to integrate synergies of emerging technologies, including cloud, Internet of Things, Artificial Intelligence and analytics. Moreover, increasing Internet penetration in the emerging markets, particularly across the Asia-Pacific, is a tailwind.
Adoption of the Multi-Cloud Model:Growing uptake of the multi-cloud model to achieve better scalability and attain improved resource utilization is also expanding the scope of the industry participants. Cloud and hardware/software virtual technologies are anticipated to favorably impact the industry. As growth and investment opportunities in developed countries continue to slow down, we believe that emerging economies will play a crucial role in the days ahead.
Growing Cyber Attacks is a Tailwind: The increasing number of cyber-attacks and related security risks are expected to keep the industry’s momentum alive. Government agencies are ideal targets for cyber-attacks, as they are entrusted with sensitive information. Therefore, the growing need for cyber security solutions and services in critical areas like defense, intelligence and civilian agencies of the U.S. government bodes well for the industry players.
Talent Cost Woes: Rising spending on acquiring skilled talent and restructuring initiatives involving modernization of the IT-service infrastructure are causing higher debt levels, R&D, and sales & marketing expenses.
Zacks Industry Rank Indicates Encouraging Prospects
The Zacks Technology Services industry, which is housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #126. This rank places it in the top 50% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that investors can buy or retain given their sturdy potential, let’s take a look at the industry’s recent stock market performance and current valuation.
Industry Underperforms Sector and S&P 500
The Zacks Technology Services industry has lagged the broader Zacks Business Services sector as well as the Zacks S&P 500 composite over the past year.
The industry has declined 67.1% over this period compared with a 47% decline of the broader sector and a 21.5% downside of the Zacks S&P 500 composite.
One-Year Price Performance
Industry’s Current Valuation
On the basis of EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation and amortization), which is commonly used for valuing technology services stocks, the industry is currently trading at 24.37X compared with the S&P 500’s 11.11X and the sector’s 20.39X.
Over the past year, the industry has traded as high as 46.28X, as low as 19.75X and at the median of 26.58X as the charts below show.
3 Key Technology Services Picks
We are presenting two Zacks Rank #2 (Buy) stocks and one Zacks Rank #3 (Hold) stock that are well-positioned to grow in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Matterport: This California-based spatial data company focuses on digitization and datafication of the built world. Matterport’s top line is likely to benefit from strength across subscription and annual recurring revenues. A strong subscriber base, industry partnerships, product launches and expanded service offerings act as other tailwinds. The Zacks Consensus Estimate for Matterport’s 2022 EPS has improved 0.1% in the past 90 days. MTTR stock has declined 86.3% in the past year. It carries a Zacks Rank #2.
Price & Consensus: MTTR
TuSimple: This California-based autonomous technology company develops autonomous technology specifically designed for semi-trucks in the United States and internationally. TuSimple stands to benefit from continued improvements in asset utilization, contributions from new semi-trucks, solid customer relationships and the addition of logistics players. The Zacks Consensus Estimate for TuSimple’s 2022 EPS has improved 8.5% in the past 90 days. TSP stock has declined 93.2% in the past year. It carries a Zacks Rank #2.
Price & Consensus: TSP
IQVIA Holdings: This Zacks Rank #3 North Carolina-based company provides advanced analytics, technology solutions, and contract research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. IQVIA Holdings has a strong healthcare-specific global IT infrastructure, analytics-driven clinical development capabilities, a robust real-world solutions ecosystem and a growing set of proprietary clinical and commercial applications that allow it to grow and retain relationships with healthcare stakeholders. With an increasing presence in emerging markets, IQVIA Holdings will likely benefit from growth opportunities in the life sciences industry. Consistent share buybacks boost investor confidence and positively impact earnings per share. The Zacks Consensus Estimate for IQVIA Holdings’ 2022 EPS has improved 1.7% in the past 90 days. IQV stock has declined 11.9% in the past year.
Price & Consensus: IQV

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report
TuSimple Holdings Inc. (TSP) : Free Stock Analysis Report
Matterport, Inc. (MTTR) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research
Related Quotes
Turmoil at the self-driving trucking company comes as the FBI, SEC probe TuSimple’s ties to a Chinese startup.
San Diego, California-based TuSimple also announced late on Thursday that it removed four independent directors and appointed co-founder and major shareholder Mo Chen as executive chairman of the board. The reshuffle follows an investigation by its board that concluded that some of its employees spent paid hours last year working for Hydron Inc, a startup working on autonomous trucks mostly in China. TuSimple said the investigation also found that confidential information had been shared with Hydron that was not brought to the attention of audit and government security committees.
UTHR vs. CORT: Which Stock Is the Better Value Option?
Next Thursday, ahead of the opening bell, Target , after consecutive embarrassing quarters in terms of corporate execution and inventory management, will release the firm's third quarter financial performance. For the quarter, Wall Street is looking for GAAP EPS of $2.13 (within a range spanning from $1.90 to $2.40) on revenue of $26.4B (within a range spanning from $25.75B to $26.75B). At consensus, these numbers would amount to earnings "growth" of -29% on revenue growth of 2.7%.
Stock futures extend gains on rate bets, China Covid easing; FTX woes deepen as crypto exchange warns on us operations; Musk says can't rule out Twitter bankruptcy as more execs depart; TuSimple shares slump as former CEO returns to helm and Intel slides as JPMorgan resumes coverage with 'underweight' rating.
TXRH vs. CMG: Which Stock Is the Better Value Option?
Charles Schwab Chief Fixed Income Strategist Kathy Jones joins Yahoo Finance Live to discuss Fed rate hikes and why she's skeptical of a soft landing, and what she's expecting from inflation data over the next 3-6 months.
Luminar Technologies ( NASDAQ:LAZR ) Third Quarter 2022 Results Key Financial Results Revenue: US$12.8m (up 60% from 3Q…
Shares of Matterport (NASDAQ: MTTR), a spacial data company, were rising today after the company reported better-than-expected third-quarter results. The tech company's top and bottom lines both beat analysts' consensus estimates, causing investors to push the company's share price up by 24.5% as of 12:52 p.m. ET. Matterport reported a non-GAAP (adjusted) loss of $0.09 per share — which was down from a loss of $0.06 in the year-ago quarter — but better than Wall Street's average estimate of a loss of $0.13.
There have been more than 50 changes to the Dow since 1896. Removing these three established companies could be next on the docket.
Canoo (GOEV) is set to buy a vehicle facility in Oklahoma to focus on LDV and LV production. It reported an adjusted loss in Q3 '22, which is narrower than expected but wider year over year.
The sudden collapse of FTX, the world’s third-largest cryptocurrency exchange, underlines how important it is for any investor to learn about the risks taken when money is parked with a lightly regulated firm. Sam Bankman-Fried resigned his position as CEO and was replaced by John J. Ray III, a lawyer who has worked on the bankruptcies of Enron, Nortel Networks and many other companies. FTX, based in the Bahamas, held about $16 billion in customer assets but had lent about $10 billion of that to Alameda Research, a trading firm also run by Bankman-Fried and headquartered in Hong Kong, according to a Wall Street Journal report.
The consensus price target hints at a 131.8% upside potential for SoFi Technologies, Inc. (SOFI). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
In this article, we discussed why oil might be heading to $125 and the 10 most shorted oil stocks. If you want to skip our discussion, you can check out the 5 Most Shorted Oil Stocks. Oil prices have been volatile because there has been so much going on around the globe. These historical occurrences, such […]
At the end of July we identified 10 stocks that insiders were piling into and shared it with our subscribers. In this article we are going to revisit our July 2022 thesis in each stock and report each stock’s performance. These stocks outperformed the market by an average of 1 percentage point since then. Here […]
Economic uncertainty in 2022 triggered a gut-wrenching downturn in the stock market. The S&P 500 is down 17.8% from its previous high, and the Nasdaq Composite slipped 31.2%. For instance, Cloudflare (NYSE: NET) and CrowdStrike (NASDAQ: CRWD) have seen their share prices plunge 78.5% and 54%, respectively, leaving both stocks trading near 52-week lows.
Thank you for joining us today to discuss Pan American Silver's Q3 2022 results and our agreement with Agnico Eagle Mines Limited to acquire Yamana Gold. But before we get into the discussion, let me first provide a brief recap of our Q3 results.
Shares of Redfin (NASDAQ: RDFN) were climbing for the second consecutive day following a third-quarter earnings report that missed Wall Street expectations but still contained good news for investors. Redfin's instant home purchase iBuying program is being jettisoned, and the real estate outfit was cutting the size of its workforce. Zillow (NASDAQ: Z) (NASDAQ: ZG) had a program, and Opendoor Technologies (NASDAQ: OPEN) thrived with it.
Shares of connected-TV platform company Roku (NASDAQ: ROKU) jumped on Friday after an analyst put a note out for investors. As of 1 p.m. ET, Roku stock was up 9%. Dozens of analysts follow Roku stock and Jefferies analyst Andrew Uerkwitz joined them today by initiating coverage with a hold rating, according to The Fly.
(Bloomberg) — The entire $16 billion fortune of former FTX co-founder Sam Bankman-Fried has been wiped out, one of history’s greatest-ever destructions of wealth.Most Read from BloombergMusk Warns Twitter Bankruptcy Possible as Senior Executives ExitMusk’s First Email to Twitter Staff Ends Remote WorkBankman-Fried’s Assets Plummet From $16 Billion to Zero in DaysBankman-Fried Resigns From FTX, Puts Empire in BankruptcyChina Eases Quarantine, Ends Flight Bans in Covid Zero ShiftThe downfall of h


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button