3 IT Services Stocks to Buy Right Now From a Prospering Industry
Industry Description
The Zacks Computers – IT Services industry comprises companies that provide consultancy, communications software and services, IT management and operations, cloud-based web development platform, customer relationship management, professional information solutions, real estate information and analysis, and outsourcing services. Industry participants cater to a wide array of end markets, including manufacturing, telecommunications, banking, insurance, healthcare, government agencies and public sector institutions. They focus on the cybersecurity business, the cloud computing market, generative AI, IoT and automation to bolster prospects. Offerings from industry participants help improve engagement with customers, launch products and support new business models, with enterprises going for digital transformation.
What's Shaping the Future of the Computers - IT Services Industry
Digitization Wave is a Tailwind: Most industry participants are modernizing their traditional legacy-oriented business processes to keep pace with evolving IT services. The aim is to integrate the coordination of emerging technologies, including cloud, IoT, AI and analytics. Increasing Internet penetration in emerging markets, particularly across the Asia Pacific, is another tailwind.
Hybrid Work Environment to Boost Prospects: The industry’s growth is expected to accelerate in the days ahead due to an increasing number of hybrid workers. In this era of digital transformation, enterprises are actively seeking a common ground between on-premise and cloud infrastructures, which will enable them to provide flexible and easily adaptable hybrid solutions.
Improving IT Spending to Aid Prospects: Improving IT spending trends bode well for industry participants. Gartner projects IT spending to increase 9.8% over 2025’s estimated figure of $5.54 trillion to $6.08 trillion in 2026. Spending on IT services is expected to see an 8.7% improvement for 2026.
Zacks Industry Rank Indicates Bullish Prospects
The Zacks Computers - IT Services is housed within the broader Zacks Computer and Technology Sector. It currently carries a Zacks Industry Rank #85, which places it in the top 35% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. The aggregate earnings estimate revisions show that analysts are optimistic about this group’s earnings growth potential. Since Nov. 30, 2025, the industry’s earnings estimate for the current year has increased by a couple of cents.
Given the industry’s bullish prospects, there are several stocks worth buying. But before we present the stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags Sector and S&P 500
The Zacks Computers - IT Services Industry has underperformed the S&P 500 and the broader Zacks Computer and Technology sector in the past year.
The industry has dropped 23.6% over this period compared with the S&P 500’s and the broader sector’s return of 22.7% and 34.1%, respectively.
One-Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month price/earnings, which is a commonly used multiple for valuing IT Services companies, the industry is currently trading at 19.48X, higher than the S&P 500’s 21.57X but lower than the sector’s 24.06X.
Over the past five years, the industry has traded as high as 39.71X and as low as 19.48X, with the median being 28.27X, as the charts below show.
Price/Earnings (F12M)
3 IT Services Stocks to Buy Right Now
Vertiv: This Zacks Rank #2 (Buy) company’s shares have jumped 212.7% in the trailing 12-month period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vertiv is benefiting from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions, which is noteworthy. The company is also benefiting from the accelerating digital transformation driven by AI and data center demand. For 2026, revenues are now expected to be between $13.25 billion and $13.75 billion. Organic net sales growth is expected to be between 27% and 29%.
The Zacks Consensus Estimate for VRT’s 2026 earnings is pegged at $6.15 per share, down a couple of cents over the past 30 days. The figure indicates 46.4% growth from the figure reported in the year-ago quarter.
Price and Consensus: VRT
Jack Henry & Associates: This Zacks Rank #2 company is benefiting from growing services, support and processing revenues. The rise in data processing and hosting fees is contributing well. Strength in its card processing solutions due to expanding transaction volumes is a plus. Growing payment processing and digital revenues are major upsides. Strong momentum across the Core, Payments, Complementary and Corporate segments is positively impacting its top-line growth. Shares of Jack Henry & AssociatesJKHY-- dropped 5.3% in a year.
The Zacks Consensus Estimate for Jack Henry & Associates’ 2026 earnings has increased by 4 cents to $6.58 per share over the past 30 days. The figure suggests 5.5% growth from the figure reported in the year-ago quarter.
Price and Consensus: JKHY
For 2026, the consensus mark for earnings has increased by three cents to $4.01 per share, which suggests 9.9% growth from the figure reported in the year-ago quarter. GenpactG-- shares have decreased 24.1% in a year.
Price and Consensus: G
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
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Vertiv Holdings Co. (VRT): Free Stock Analysis Report
Genpact Limited (G): Free Stock Analysis Report
Jack Henry & Associates, Inc. (JKHY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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