The Business Services sector is beginning to stand out among the Zacks Rank #1 (Strong Buy) list, with 19 stocks in the space rated Strong Buy.
Several of these highly ranked business services sector stocks belong to the Zacks Technology Services industry, which ranks in the top 30% of the roughly 250 Zacks industries. Additionally, now may be an ideal time to invest in these two technology services companies that recently launched their IPOs.
SOFI Technologies
Trading at under $10, Sofi Technologies shares are very attractive given its expansion as a consumer-centric financial platform. Sofi, which is set to go public in 2021, is shaping up to be one of the most diversified fintech companies in the U.S., offering services including loans, credit cards, investments, insurance and banking services.
More importantly, SoFi is on the brink of turning a profit, with earnings now expected to be $0.09 per share in fiscal 2024, compared to an adjusted loss per share of -$0.36 last year. Furthermore, earnings per share are expected to rise another 182% to $0.26 in fiscal 2025.
Sofi's rapid sales growth also supports the company's future profitability, with total sales expected to grow 18% this year and a further 14% in fiscal year 2025 to reach $2.81 billion.
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Qifu Technology QFIN
Qifu Technology, which launched its IPO last year, is one of China's leading fintech companies. As a credit technology platform, Qifu offers a comprehensive suite of technology services to support the loan lifecycle for financial institutions, consumers and businesses.
Notably, Qifu's shares have risen nearly 60% year to date, dominating the broader index and significantly outperforming Chinese tech giants Alibaba BABA and Baidu BIDU, which are down -8% and -35% respectively.
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Investor interest in Qifu is soaring. The company is already profitable, with annual earnings expected to rise 34% to $4.94 per share in fiscal 2024 and EPS of $3.68 in fiscal 2023. Even better, EPS is expected to rise another 4% in fiscal 2025. Further indicating that Qifu stock could rise even further, earnings estimate revisions for fiscal 2024 and fiscal 2025 have skyrocketed in the past 60 days.
Even better, at less than $30, Qifu's shares trade at just five times forward earnings, compared with 23.7 for the S&P 500, 8 for Alibaba, and 10.1 for Baidu.
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Conclusion
Like Qifu, Sofi's earnings estimate revisions continue to rise, and given the strengthening outlook, now is an ideal time to buy shares in these promising technology services companies that are shaping up to be viable investments well into 2024 and beyond.
The story continues
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Qifu Technology, Inc. (QFIN) : Free Stock Analysis Report
SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report
Baidu, Inc. (BIDU) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
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