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Sectors & IndustriesTechnologyInformation 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...
OverviewZen Score
PriceValuationFinancialsForecastEarnings & RevenueDividendsOwnershipTechnicals
Ticker
Company
Zen Score
Valuation Score
Financials Score
Forecast Score
Performance Score
Dividends Score
PRFT
PERFICIENT INC
64
86
43
56
70
–
GDYN
GRID DYNAMICS HOLDINGS INC
63
57
100
67
30
–
EXLS
EXLSERVICE HOLDINGS INC
63
71
86
33
60
–
EPAM
EPAM SYSTEMS INC
62
43
100
56
50
–
CTSH
COGNIZANT TECHNOLOGY SOLUTIONS CORP
60
71
86
44
20
80

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Use Zen Score to quickly analyze stock fundamentals, even if you don't have a finance background. We run time-tested due diligence checks inspired by legendary investors like Warren Buffett, and score each company based on how many they pass/fail.

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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. Perficient (NASDAQ:PRFT)


Perficient (NASDAQ:PRFT) is the top information technology service stock with a Zen Score of 64, which is 33 points higher than the information technology service industry average of 31. It passed 21 out of 33 due diligence checks and has strong fundamentals. Perficient has seen its stock lose -35.44% over the past year, underperforming other information technology service stocks by -49 percentage points.

Perficient has an average 1 year price target of $64.40, an upside of 33.86% from Perficient's current stock price of $48.11.

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

2. Exlservice Holdings (NASDAQ:EXLS)


Exlservice Holdings (NASDAQ:EXLS) is the second best information technology service stock with a Zen Score of 63, which is 32 points higher than the information technology service industry average of 31. It passed 20 out of 33 due diligence checks and has strong fundamentals. Exlservice Holdings has seen its stock lose -13.93% over the past year, underperforming other information technology service stocks by -28 percentage points.

Exlservice Holdings has an average 1 year price target of $37.00, an upside of 24.79% from Exlservice Holdings's current stock price of $29.65.

Exlservice Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Exlservice Holdings, 25% have issued a Strong Buy rating, 50% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Grid Dynamics Holdings (NASDAQ:GDYN)


Grid Dynamics Holdings (NASDAQ:GDYN) is the third best information technology service stock with a Zen Score of 63, which is 32 points higher than the information technology service industry average of 31. It passed 20 out of 33 due diligence checks and has strong fundamentals. Grid Dynamics Holdings has seen its stock lose -11.51% over the past year, underperforming other information technology service stocks by -25 percentage points.

Grid Dynamics Holdings has an average 1 year price target of $16.00, an upside of 58.89% from Grid Dynamics Holdings's current stock price of $10.07.

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.

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 10.42%, 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 7.57%, 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 577.8% 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 5.39%, 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 134.6% indicates that its high dividend yield might not be sustainable for the long-term.

Why are information technology service stocks up?

Information technology service stocks were up 1.21% in the last day, and up 0.09% over the last week. Conduent was the among the top gainers in the information technology services industry, gaining 5.16% yesterday.

Conduent shares are trading higher after the company announced an agreement for the sale of its Casualty Claims Solutions business to MedRisk for $240 million in cash.

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. Perficient (NASDAQ:PRFT)


Perficient (NASDAQ:PRFT) is the most undervalued information technology service stock based on WallStreetZen's Valuation Score. Perficient has a valuation score of 86, which is 58 points higher than the information technology service industry average of 28. It passed 6 out of 7 valuation due diligence checks.

Perficient's stock has dropped -35.44% in the past year. It has underperformed other stocks in the information technology service industry by -49 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 43 points higher than the information technology service industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Cognizant Technology Solutions's stock has gained 12.52% in the past year. It has underperformed other stocks in the information technology service industry by -1 percentage points.

3. Concentrix (NASDAQ:CNXC)


Concentrix (NASDAQ:CNXC) is the third most undervalued information technology service stock based on WallStreetZen's Valuation Score. Concentrix has a valuation score of 71, which is 43 points higher than the information technology service industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Concentrix's stock has dropped -35.27% in the past year. It has underperformed other stocks in the information technology service industry by -49 percentage points.

Are information technology service stocks a good buy now?

36.73% of information technology service stocks rated by analysts are a buy right now. On average, analysts expect information technology service stocks to rise by 17.92% 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 27.22x.
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