Sectors & Industries TechnologyInformation Technology Services
Best Information Technology Service Stocks to Buy Now (2024)
Top information technology service stocks in 2024 ranked by overall Zen Score. See the best information technology service stocks to buy now, according to analyst forecasts for the information technology services industry.

Industry: Information Technology Se...

Price Valuation Financials Forecast Earnings & Revenue Dividends Ownership Technicals

Ticker	Company	Zen Score	Valuation Score	Financials Score	Forecast Score	Performance Score	Dividends Score
EPAM	EPAM SYSTEMS INC	66	57	100	56	50	–
GDYN	GRID DYNAMICS HOLDINGS INC	63	57	100	67	30	–
CTSH	COGNIZANT TECHNOLOGY SOLUTIONS CORP	60	71	86	44	20	80
GMM	GLOBAL MOFY METAVERSE LTD	59	71	86	0	80	–
G	GENPACT LTD	56	43	86	11	60	80
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Information Technology Service Stocks FAQ

What are the best information technology service stocks to buy right now in May 2024?

According to Zen Score, the 3 best information technology service stocks to buy right now are:

1. Epam Systems (NYSE:EPAM)

Epam Systems (NYSE:EPAM) is the top information technology service stock with a Zen Score of 66, which is 32 points higher than the information technology service industry average of 34. It passed 21 out of 33 due diligence checks and has strong fundamentals. Epam Systems has seen its stock lose -19.37% over the past year, underperforming other information technology service stocks by -37 percentage points.

Epam Systems has an average 1 year price target of $281.88, an upside of 50.09% from Epam Systems's current stock price of $187.80.

Epam Systems stock has a consensus Buy recommendation according to Wall Street analysts. Of the 16 analysts covering Epam Systems, 50% have issued a Strong Buy rating, 12.5% have issued a Buy, 37.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Grid Dynamics Holdings (NASDAQ:GDYN)

Grid Dynamics Holdings (NASDAQ:GDYN) is the second best information technology service stock with a Zen Score of 63, which is 29 points higher than the information technology service industry average of 34. It passed 20 out of 33 due diligence checks and has strong fundamentals. Grid Dynamics Holdings has seen its stock return 24.33% over the past year, overperforming other information technology service stocks by 7 percentage points.

Grid Dynamics Holdings has an average 1 year price target of $16.00, an upside of 56.56% from Grid Dynamics Holdings's current stock price of $10.22.

Grid Dynamics Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Grid Dynamics Holdings, 80% have issued a Strong Buy rating, 20% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Cognizant Technology Solutions (NASDAQ:CTSH)

Cognizant Technology Solutions (NASDAQ:CTSH) is the third best information technology service stock with a Zen Score of 60, which is 26 points higher than the information technology service industry average of 34. It passed 21 out of 38 due diligence checks and has strong fundamentals. Cognizant Technology Solutions has seen its stock return 9.56% over the past year, underperforming other information technology service stocks by -8 percentage points.

Cognizant Technology Solutions has an average 1 year price target of $77.75, an upside of 13.07% from Cognizant Technology Solutions's current stock price of $68.76.

Cognizant Technology Solutions stock has a consensus Hold recommendation according to Wall Street analysts. Of the 12 analysts covering Cognizant Technology Solutions, 16.67% have issued a Strong Buy rating, 8.33% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 8.33% 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 10.64%, which is 8 percentage points higher than the information technology service industry average of 2.64%.

Clps's dividend payout ratio of -100% indicates that its high dividend yield might not be sustainable for the long-term.

2. Ttec Holdings (NASDAQ:TTEC)

Ttec Holdings (NASDAQ:TTEC) has an annual dividend yield of 7.97%, which is 5 percentage points higher than the information technology service industry average of 2.64%. Ttec Holdings's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Ttec Holdings's dividend has not shown consistent growth over the last 10 years.

Ttec Holdings's dividend payout ratio of -223.1% 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 5.75%, which is 3 percentage points higher than the information technology service industry average of 2.64%. Information Services Group's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Information Services Group's dividend has not shown consistent growth over the last 10 years.

Information Services Group's dividend payout ratio of -1,800% indicates that its high dividend yield might not be sustainable for the long-term.

Why are information technology service stocks down?

Information technology service stocks were down -0.46% in the last day, and up 0.92% over the last week. Dxc Technology Co was the among the top losers in the information technology services industry, dropping -16.9% yesterday.

DXC Technology shares are trading lower after the company issued weak guidance.

What are the most undervalued information technology service stocks?

Based on WallStreetZen's Valuation Score, the 3 most undervalued information technology service stocks right now are:

1. Concentrix (NASDAQ:CNXC)

Concentrix (NASDAQ:CNXC) is the most undervalued information technology service stock based on WallStreetZen's Valuation Score. Concentrix has a valuation score of 71, which is 42 points higher than the information technology service industry average of 29. It passed 5 out of 7 valuation due diligence checks.

Concentrix's stock has dropped -27.15% in the past year. It has underperformed other stocks in the information technology service industry by -45 percentage points.

2. Cognizant Technology Solutions (NASDAQ:CTSH)

Cognizant Technology Solutions (NASDAQ:CTSH) is the second most undervalued information technology service stock based on WallStreetZen's Valuation Score. Cognizant Technology Solutions has a valuation score of 71, which is 42 points higher than the information technology service industry average of 29. It passed 5 out of 7 valuation due diligence checks.

Cognizant Technology Solutions's stock has gained 9.56% in the past year. It has underperformed other stocks in the information technology service industry by -8 percentage points.

3. Global Mofy Metaverse (NASDAQ:GMM)

Global Mofy Metaverse (NASDAQ:GMM) is the third most undervalued information technology service stock based on WallStreetZen's Valuation Score. Global Mofy Metaverse has a valuation score of 71, which is 42 points higher than the information technology service industry average of 29. It passed 5 out of 7 valuation due diligence checks.

Are information technology service stocks a good buy now?

38.3% of information technology service stocks rated by analysts are a buy right now. On average, analysts expect information technology service stocks to rise by 14.6% over the next year.

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 27.32x.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

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.

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