Sectors & IndustriesTechnologyInformation Technology Services
Best Information Technology Service Stocks to Buy Now (2025)
Top information technology service stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best information technology service stocks to buy now. Learn More.

Industry: Information Technology Se...
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Information Technology Services is Zen Rated A and is the 26th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Zen Rating
Value
Growth
Momentum
Sentiment
Safety
Financials
AI
1w Zen Rating
1m Zen Rating
3m Zen Rating
1y Zen Rating
IBEX
IBEX LTD
AACBBCACAAA
KD
KYNDRYL HOLDINGS INC
ACBBCBBBAAB
LDOS
LEIDOS HOLDINGS INC
AACCBBBBBBA
III
INFORMATION SERVICES GROUP INC
BCCBACBCBAA
FORTY
FORMULA SYSTEMS (1985) LTD
BCCACBCCBAA

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Use the proven Zen Ratings quant model to find stocks with high potential to beat the market. Stocks Zen-Rated "A" have beaten the market by +32.52% annually. Learn More

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Information Technology Service Stocks FAQ

What are the best information technology service stocks to buy right now in Jul 2025?

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best information technology service stocks to buy right now are:

1. Ibex (NASDAQ:IBEX)


Ibex (NASDAQ:IBEX) is the #1 top information technology service stock out of 70 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Ibex (NASDAQ:IBEX) is: Value: A, Growth: C, Momentum: B, Sentiment: B, Safety: C, Financials: A, and AI: C.

Ibex (NASDAQ:IBEX) has a Due Diligence Score of 60, which is 25 points higher than the information technology service industry average of 35.

IBEX passed 19 out of 33 due diligence checks and has strong fundamentals. Ibex has seen its stock return 85.39% over the past year, overperforming other information technology service stocks by 79 percentage points.

Ibex has an average 1 year price target of $27.00, a downside of -9.82% from Ibex's current stock price of $29.94.

Ibex stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Ibex, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Kyndryl Holdings (NYSE:KD)


Kyndryl Holdings (NYSE:KD) is the #2 top information technology service stock out of 70 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Kyndryl Holdings (NYSE:KD) is: Value: C, Growth: B, Momentum: B, Sentiment: C, Safety: B, Financials: B, and AI: B.

Kyndryl Holdings (NYSE:KD) has a Due Diligence Score of 34, which is -1 points lower than the information technology service industry average of 35. Although this number is below the industry average, our proven quant model rates KD as a "A".

KD passed 11 out of 33 due diligence checks and has average fundamentals. Kyndryl Holdings has seen its stock return 58.1% over the past year, overperforming other information technology service stocks by 52 percentage points.

Kyndryl Holdings has an average 1 year price target of $45.00, an upside of 6.21% from Kyndryl Holdings's current stock price of $42.37.

Kyndryl Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Kyndryl Holdings, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Leidos Holdings (NYSE:LDOS)


Leidos Holdings (NYSE:LDOS) is the #3 top information technology service stock out of 70 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Leidos Holdings (NYSE:LDOS) is: Value: A, Growth: C, Momentum: C, Sentiment: B, Safety: B, Financials: B, and AI: B.

Leidos Holdings (NYSE:LDOS) has a Due Diligence Score of 54, which is 19 points higher than the information technology service industry average of 35.

LDOS passed 20 out of 38 due diligence checks and has strong fundamentals. Leidos Holdings has seen its stock return 11.49% over the past year, overperforming other information technology service stocks by 5 percentage points.

Leidos Holdings has an average 1 year price target of $171.00, an upside of 5.15% from Leidos Holdings's current stock price of $162.62.

Leidos Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Leidos Holdings, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the information technology service stocks with highest dividends?

Out of 18 information technology service stocks that have issued dividends in the past year, the 3 information technology service stocks with the highest dividend yields are:

1. Clps (NASDAQ:CLPS)


Clps (NASDAQ:CLPS) has an annual dividend yield of 13.93%, which is 11 percentage points higher than the information technology service industry average of 2.56%.

Clps's dividend payout ratio of -288.9% indicates that its high dividend yield might not be sustainable for the long-term.

2. Xerox Holdings (NASDAQ:XRX)


Xerox Holdings (NASDAQ:XRX) has an annual dividend yield of 11.3%, which is 9 percentage points higher than the information technology service industry average of 2.56%. Xerox Holdings's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Xerox Holdings's dividend has not shown consistent growth over the last 10 years.

Xerox Holdings's dividend payout ratio of -8.3% indicates that its high dividend yield might not be sustainable for the long-term.

3. Information Services Group (NASDAQ:III)


Information Services Group (NASDAQ:III) has an annual dividend yield of 3.61%, which is 1 percentage points higher than the information technology service industry average of 2.56%. Information Services Group's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Information Services Group's dividend has shown consistent growth over the last 10 years.

Information Services Group's dividend payout ratio of 120% indicates that its dividend yield might not be sustainable for the long-term.

Why are information technology service stocks down?

Information technology service stocks were down -0.09% in the last day, and up 2.71% over the last week.

We couldn't find a catalyst for why information technology service stocks are down.

What are the most undervalued information technology service stocks?

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued information technology service stocks right now are:

1. Science Applications International (NASDAQ:SAIC)


Science Applications International (NASDAQ:SAIC) is the most undervalued information technology service stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Science Applications International has a valuation score of 86, which is 56 points higher than the information technology service industry average of 30. It passed 6 out of 7 valuation due diligence checks.

Science Applications International's stock has gained 0.94% in the past year. It has underperformed other stocks in the information technology service industry by -6 percentage points.

2. DXC Technology Co (NYSE:DXC)


DXC Technology Co (NYSE:DXC) is the second most undervalued information technology service stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

DXC Technology Co has a valuation score of 71, which is 41 points higher than the information technology service industry average of 30. It passed 5 out of 7 valuation due diligence checks.

DXC Technology Co's stock has dropped -12.6% in the past year. It has underperformed other stocks in the information technology service industry by -19 percentage points.

3. Concentrix (NASDAQ:CNXC)


Concentrix (NASDAQ:CNXC) is the third most undervalued information technology service stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Concentrix has a valuation score of 71, which is 41 points higher than the information technology service industry average of 30. It passed 5 out of 7 valuation due diligence checks.

Concentrix's stock has dropped -13.9% in the past year. It has underperformed other stocks in the information technology service industry by -20 percentage points.

Are information technology service stocks a good buy now?

38.78% of information technology service stocks rated by analysts are a buy right now. On average, analysts expect information technology service stocks to rise by 15.07% over the next year.

5.56% of information technology service stocks have a Zen Rating of A (Strong Buy), 27.78% of information technology service stocks are rated B (Buy), 51.85% are rated C (Hold), 11.11% are rated D (Sell), and 3.7% are rated F (Strong Sell).

What is the average p/e ratio of the information technology services industry?

The average P/E ratio of the information technology services industry is 32.8x.
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Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.