HomeMost PopularInvestingThe Rise of High-Growth Business Service Stocks: A Potent Portfolio Addition

The Rise of High-Growth Business Service Stocks: A Potent Portfolio Addition

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Market Resilience in Face of Economic Heat

Markets showed unwavering resilience on Thursday following a previous day’s broad selloff triggered by hotter-than-expected CPI data. The S&P 500 and Nasdaq surged by 1% and 2%, respectively, showcasing a robust bounce-back, a testament to investor confidence in buying the dip. In this market backdrop, several high-growth stocks within the Zacks Business Services sector beckon attention.

Diving into Core & Main’s Impressive Growth Story

Core & Main, specializing in waste removal services, stands out as a prime contender. Forecasted to elevate its annual earnings by 24% in fiscal 2025 and a further 7% in 2026, evidenced by an expected surge from $2.15 to $2.59 per share. Sales are also set to rise by 12% in FY25 and another 4% in FY26, with earnings estimates for both periods witnessing a positive uptick of 5% and 2%, respectively.

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The Ascending Trajectory of GigaCloud Technology

GigaCloud Technology, a leader in B2B e-commerce solutions, captures attention through soaring earnings estimates. Projections indicate a remarkable increase of 16% for FY24 and an astounding 41% for FY25. Trading at a modest 12X forward earnings multiple and pegged for high double-digit sales growth, GigaCloud’s future looks bright with sales expected to surpass the $1 billion mark.

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HNI’s Steady Growth and Promising Future

HNI, a provider of home and workplace solutions, remains a robust player in the market. With a projected EPS growth of 10% for the current year and an additional 11% growth in FY25, annual sales estimates are set to climb by 10% in FY24 and a further 4% in FY25, currently painting a positive investment picture. Notably, FY24 and FY25 EPS estimates have seen a collective uptick of 6% over the past two months.

Zacks Investment Research

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Embracing Growth Opportunities in Business Services

Rising earnings forecasts underscore the dynamic growth potential of these top-tier business services stocks, all encapsulating a Zacks Rank #1 (Strong Buy) and boasting an impressive β€œA” Zacks Style Scores grade for Growth.

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HNI Corporation (HNI) : Free Stock Analysis Report

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GigaCloud Technology Inc. (GCT) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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