ABM

ABM Industries stock has outperformed the market with a 28.2% gain over six months, driven by strong growth in high-margin infrastructure markets including semiconductors, microgrids, and data centers. The company raised FY26 free cash flow guidance to $210M and achieved its below-3X leverage target ahead of schedule. However, macroeconomic headwinds in commercial real estate and airline sectors, combined with rising debt and interest expenses, pose risks to future growth.

Zacks analyzes three business services stocks amid industry challenges. Concentrix is transitioning to AI-enabled customer experience solutions with improving margins.

Sodexo benefits from resilient outsourcing demand and strong Sodexo Live! performance. ABM is expanding in semiconductor, data center, and microgrid markets with strong organic growth. The broader Business Services industry faces headwinds with a Zacks Industry Rank of #173 and has underperformed the S&P 500 by 40.8% over the past 12 months.

The Business Services industry is underperforming the S&P 500, trading at a lower valuation multiple (13.58X vs 19.87X P/E). Three key companies—Concentrix, Sodexo, and ABM Industries—are benefiting from AI integration, outsourcing demand, and infrastructure investment, though they face headwinds from labor shortages and wage inflation. Concentrix leads in AI-enabled customer experience solutions with improving margins, Sodexo shows resilient organic growth in food and facilities management, and ABM is expanding in high-growth semiconductor and data center markets.

ABM Industries beat Q3 fiscal 2026 earnings expectations with adjusted EPS of $1.04 (up 27% YoY) and revenues of $2.32 billion (up 4.2% YoY). The company raised its full-year guidance and showed strong growth in high-margin semiconductor, microgrid, and data center segments. However, shares have underperformed the S&P 500 by 2% since the earnings report, with the stock rated a Hold (Zacks Rank #3).

AMN Healthcare shares surged 8.9% to $46.82, driven by investor optimism about recovery in healthcare staffing demand and stronger-than-expected Q2 2026 results. However, the stock carries a Zacks Rank #3 (Hold) rating as earnings estimate revisions have remained flat over the past 30 days, suggesting the recent momentum may not sustain without positive estimate changes.

Equifax reported Q3 adjusted EPS of $2.26 (up 10.8% YoY) and revenues of $1.69 billion (up 9.6% YoY), beating consensus estimates. However, the company cut its 2026 revenue guidance midpoint to $6.661 billion due to weaker U.S. mortgage demand, offsetting strong growth in USIS (up 13%), Workforce Solutions (up 7%), and international operations (up 9%).

Accenture is expected to report Q4 fiscal 2026 results on October 1 with revenues estimated at $18B (up 5.6% YoY) and EPS projected at $3.19 (up 5.3% YoY). Growth is anticipated across most segments driven by AI demand and consulting capabilities, though Asia Pacific revenues are expected to decline 26.4%. The company has a positive earnings surprise history and an Earnings ESP of +0.31%.