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Buy 5 Business Services Stocks as U.S. CEO Confidence Hits 3-Year High
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The Conference Board has reported that U.S. CEO (Chief Executive Officer) confidence reached an index of 60 in the first quarter of 2025. Any reading above 50 indicates a shift from "cautious optimism" to "confident optimism" among CEOs.
CEOs are more confident now on both current and future economic conditions buoyed by a strong labor market and economy. The U.S. economy grew at 2.8% in fourth-quarter 2024. The Atlanta Fed GDPNow tracker currently shows 2.3% GDP growth in first-quarter 2025.
The Conference Board survey revealed that 44% of the CEOs said current economic conditions were better than six months ago, up from just 20% last quarter. Moreover, 37% said conditions in their own industries were better than six months ago, up from 21% in the last quarter. Further, 56% of CEOs expect economic conditions to improve over the next six months, up from 33% in fourth-quarter 2024.
Following the survey results, it will be prudent to invest in business services stocks with a favorable Zacks Rank. Five such stocks are Affirm Holdings Inc. (AFRM - Free Report) , Visa Inc. (V - Free Report) , Palantir Technologies Inc. (PLTR - Free Report) , AppLovin Corp. (APP - Free Report) and Cintas Corp. (CTAS - Free Report) .
5 Business Services Stocks to Buy
These stocks have strong growth potential for 2025 and 2026. These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past year.
Image Source: Zacks Investment Research
Affirm Holdings Inc.
Zacks Rank #1 Affirm Holdings’ fiscal second-quarter 2025 earnings beat consensus estimates by a huge margin. AFRM has achieved strong revenue growth through diverse income streams, including merchant network fees, interest from loans and virtual card revenues. Growing active merchant numbers, improving gross merchandise value and average balance of loans are driving merchant network revenues and interest income.
Key partnerships including those with Apple Pay and Hotels.com play a vital role in its expansion. AFRM has officially expanded to the United Kingdom, through a partnership with Alternative Airlines. Tapping into industries like travel, hospitality, and technology bodes well. AFRM’s shares are expected to offer substantial upside potential going forward.
Affirm Holdings has an expected revenue and earnings growth rate of 37% and 89.2%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for the current-year earnings has improved more than 100% in the last 30 days.
AFRM has an expected revenue and earnings growth rate of 23.6% and more than 100%, respectively, for next year (ending June 2026). The Zacks Consensus Estimate for next-year earnings has improved 98% in the last 30 days.
Visa Inc.
Zacks Rank #2 Visa’s fiscal 2025 first-quarter earnings beat estimates by 3.4%. V’s strategic acquisitions and alliances are fostering long-term growth and consistently driving revenues. It expects net revenues to grow in low double-digits in fiscal 2025. V is fueled by continued increases in payments, cross-border volumes and sustained investments in technology and is witnessing significant profit growth.
The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. With fraud cases on the rise and artificial intelligence (AI) adoption increasing, V’s services are in high demand. V has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.
Visa has invested $3.5 billion in rebuilding its data platform. V’s technology helps prevent $40 billion in fraud attempts annually. Through strategic diversification, innovation, and AI-driven security, the company is well-positioned for long-term growth.
Visa has an expected revenue and earnings growth rate of 10.2% and 12.4%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.9% in the last 30 days.
V has an expected revenue and earnings growth rate of 10.3% and 12.6%, respectively, for the next year (ending September 2026). The Zacks Consensus Estimate for next-year earnings has improved 0.6% in the last 30 days.
Palantir Technologies Inc.
Palantir Technologies, the AI-powered software platform and data analytics firm, reported robust earnings results for fourth-quarter 2024. Both the top and bottom lines exceeded the Zacks Consensus Estimate. Moreover, PLTR issued solid guidance for first-quarter and full-year 2025 revenues and earnings.
Palantir Technologies’ commercial business has gathered pace besides its traditional government contracts. This is primarily due to PLTR’s aggressive venture in the AI space. In 2023, PLTR launched its Artificial Intelligence Platform (“AIP”), an AI-powered system that helps customers quickly concentrate and analyze data and discover how it can help advance their business goals.
AIP provides unified access to open-source, self-hosted, and commercial large language models that can transform structured and unstructured data into LLM-understandable objects and turn organizations' actions and processes into tools for humans and LLM-driven agents. This shift in revenue structure has enabled the company to no longer depend on government defense agencies.
Palantir Technologies has an expected revenue and earnings growth rate of 31.4% and 31.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.5% in the last 30 days.
PLTR has an expected revenue and earnings growth rate of 26.5% and 23.2%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 13.8% in the last 30 days.
AppLovin Corp.
Zacks Rank #1 AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
APP’s last reported financial results demonstrate its strong fundamentals and growth potential. The introduction of its AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth.
AppLovin reported fourth-quarter adjusted EPS of $1.73, beating the Zacks Consensus Estimate of $1.34. The company posted quarterly revenues of $1.37 billion, surpassing the Zacks Consensus Estimate by 8.6%.
In the fourth quarter, average revenue per monthly active payer was $52 versus the consensus estimate of $51.84. Monthly active payers were 1.6 million compared to the consensus estimate of 1.62 million.
AppLovin has an expected revenue and earnings growth rate of 20.4% and 51.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.5% in the last seven days.
APP has an expected revenue and earnings growth rate of 19.5% and 37.1%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 16.7% in the last seven days.
Cintas Corp.
Zacks Rank #2 Cintas is well-positioned to benefit from the solid momentum across its segments. Penetration of additional products and services into existing customers is aiding the Uniform Rental and Facility Services segment. Improved demand for AED Rentals and WaterBreak products is driving the First Aid and Safety Services segment.
CTAS’ investments in technology and automation hold promise. The successive acquisitions of Paris Uniform and SITEX sparked optimism in the stock. CTAS' focus on the enhancement of its product portfolio, along with investments in technology and automation to improve efficiencies in existing facilities, should continue to drive its performance.
CTAS’ investment in SmartTruck technology continues to provide route optimization and improved efficiencies. Also, the company has been investing in garment-sharing technology and SAP systems for a while now. In addition, Cintas has partnered with Verizon and Google to deploy technology solutions providing its employees with the insights necessary to deliver a more personalized customer experience.
Cintas has an expected revenue and earnings growth rate of 7.3% and 13.7%, respectively, for the current year (ending May 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.2% in the last 60 days.
CTAS has an expected revenue and earnings growth rate of 7% and 10.7%, respectively, for next year (ending May 2026). The Zacks Consensus Estimate for next-year earnings has improved 0.6% in the last 60 days.
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Buy 5 Business Services Stocks as U.S. CEO Confidence Hits 3-Year High
The Conference Board has reported that U.S. CEO (Chief Executive Officer) confidence reached an index of 60 in the first quarter of 2025. Any reading above 50 indicates a shift from "cautious optimism" to "confident optimism" among CEOs.
CEOs are more confident now on both current and future economic conditions buoyed by a strong labor market and economy. The U.S. economy grew at 2.8% in fourth-quarter 2024. The Atlanta Fed GDPNow tracker currently shows 2.3% GDP growth in first-quarter 2025.
The Conference Board survey revealed that 44% of the CEOs said current economic conditions were better than six months ago, up from just 20% last quarter. Moreover, 37% said conditions in their own industries were better than six months ago, up from 21% in the last quarter. Further, 56% of CEOs expect economic conditions to improve over the next six months, up from 33% in fourth-quarter 2024.
Following the survey results, it will be prudent to invest in business services stocks with a favorable Zacks Rank. Five such stocks are Affirm Holdings Inc. (AFRM - Free Report) , Visa Inc. (V - Free Report) , Palantir Technologies Inc. (PLTR - Free Report) , AppLovin Corp. (APP - Free Report) and Cintas Corp. (CTAS - Free Report) .
5 Business Services Stocks to Buy
These stocks have strong growth potential for 2025 and 2026. These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past year.
Image Source: Zacks Investment Research
Affirm Holdings Inc.
Zacks Rank #1 Affirm Holdings’ fiscal second-quarter 2025 earnings beat consensus estimates by a huge margin. AFRM has achieved strong revenue growth through diverse income streams, including merchant network fees, interest from loans and virtual card revenues. Growing active merchant numbers, improving gross merchandise value and average balance of loans are driving merchant network revenues and interest income.
Key partnerships including those with Apple Pay and Hotels.com play a vital role in its expansion. AFRM has officially expanded to the United Kingdom, through a partnership with Alternative Airlines. Tapping into industries like travel, hospitality, and technology bodes well. AFRM’s shares are expected to offer substantial upside potential going forward.
Affirm Holdings has an expected revenue and earnings growth rate of 37% and 89.2%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for the current-year earnings has improved more than 100% in the last 30 days.
AFRM has an expected revenue and earnings growth rate of 23.6% and more than 100%, respectively, for next year (ending June 2026). The Zacks Consensus Estimate for next-year earnings has improved 98% in the last 30 days.
Visa Inc.
Zacks Rank #2 Visa’s fiscal 2025 first-quarter earnings beat estimates by 3.4%. V’s strategic acquisitions and alliances are fostering long-term growth and consistently driving revenues. It expects net revenues to grow in low double-digits in fiscal 2025. V is fueled by continued increases in payments, cross-border volumes and sustained investments in technology and is witnessing significant profit growth.
The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. With fraud cases on the rise and artificial intelligence (AI) adoption increasing, V’s services are in high demand. V has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.
Visa has invested $3.5 billion in rebuilding its data platform. V’s technology helps prevent $40 billion in fraud attempts annually. Through strategic diversification, innovation, and AI-driven security, the company is well-positioned for long-term growth.
Visa has an expected revenue and earnings growth rate of 10.2% and 12.4%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.9% in the last 30 days.
V has an expected revenue and earnings growth rate of 10.3% and 12.6%, respectively, for the next year (ending September 2026). The Zacks Consensus Estimate for next-year earnings has improved 0.6% in the last 30 days.
Palantir Technologies Inc.
Palantir Technologies, the AI-powered software platform and data analytics firm, reported robust earnings results for fourth-quarter 2024. Both the top and bottom lines exceeded the Zacks Consensus Estimate. Moreover, PLTR issued solid guidance for first-quarter and full-year 2025 revenues and earnings.
Palantir Technologies’ commercial business has gathered pace besides its traditional government contracts. This is primarily due to PLTR’s aggressive venture in the AI space. In 2023, PLTR launched its Artificial Intelligence Platform (“AIP”), an AI-powered system that helps customers quickly concentrate and analyze data and discover how it can help advance their business goals.
AIP provides unified access to open-source, self-hosted, and commercial large language models that can transform structured and unstructured data into LLM-understandable objects and turn organizations' actions and processes into tools for humans and LLM-driven agents. This shift in revenue structure has enabled the company to no longer depend on government defense agencies.
Palantir Technologies has an expected revenue and earnings growth rate of 31.4% and 31.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.5% in the last 30 days.
PLTR has an expected revenue and earnings growth rate of 26.5% and 23.2%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 13.8% in the last 30 days.
AppLovin Corp.
Zacks Rank #1 AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
APP’s last reported financial results demonstrate its strong fundamentals and growth potential. The introduction of its AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth.
AppLovin reported fourth-quarter adjusted EPS of $1.73, beating the Zacks Consensus Estimate of $1.34. The company posted quarterly revenues of $1.37 billion, surpassing the Zacks Consensus Estimate by 8.6%.
In the fourth quarter, average revenue per monthly active payer was $52 versus the consensus estimate of $51.84. Monthly active payers were 1.6 million compared to the consensus estimate of 1.62 million.
AppLovin has an expected revenue and earnings growth rate of 20.4% and 51.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.5% in the last seven days.
APP has an expected revenue and earnings growth rate of 19.5% and 37.1%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 16.7% in the last seven days.
Cintas Corp.
Zacks Rank #2 Cintas is well-positioned to benefit from the solid momentum across its segments. Penetration of additional products and services into existing customers is aiding the Uniform Rental and Facility Services segment. Improved demand for AED Rentals and WaterBreak products is driving the First Aid and Safety Services segment.
CTAS’ investments in technology and automation hold promise. The successive acquisitions of Paris Uniform and SITEX sparked optimism in the stock. CTAS' focus on the enhancement of its product portfolio, along with investments in technology and automation to improve efficiencies in existing facilities, should continue to drive its performance.
CTAS’ investment in SmartTruck technology continues to provide route optimization and improved efficiencies. Also, the company has been investing in garment-sharing technology and SAP systems for a while now. In addition, Cintas has partnered with Verizon and Google to deploy technology solutions providing its employees with the insights necessary to deliver a more personalized customer experience.
Cintas has an expected revenue and earnings growth rate of 7.3% and 13.7%, respectively, for the current year (ending May 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.2% in the last 60 days.
CTAS has an expected revenue and earnings growth rate of 7% and 10.7%, respectively, for next year (ending May 2026). The Zacks Consensus Estimate for next-year earnings has improved 0.6% in the last 60 days.