The professional services industry is fragmented, with a wide range of niches. Many great small and mid-sized companies operate in this space, offering the promising potential for long-term growth. When you invest in the professional services sector, you expect your stock to produce high returns over the long term.
However, many investors avoid this sector because it’s riskier than most other industries. Even so, with careful research and analysis, there are some great stocks to buy now in 2022 if you invest in the professional services sector.
Dun & Bradstreet Holdings (DNB)
Launched in 1922, DNB is a leading provider of business information and analytics, credit risk and management services, and business process improvement consulting services. The company provides various services to companies in virtually every industry, including the financial sector, healthcare, retail, and government. It operates in over 40 countries, including the US, UK, Canada, China, Germany, and India. DNB is one of the largest companies in its industry, with a market cap of $27 billion. Over the past decade, the stock has delivered an average annualized return of over 15%. It has a low-risk profile and a high dividend yield of 2.5%. The company has a strong balance sheet, with long-term debt equal to 25% of its equity. DNB has a Zacks Rank #3 (Hold). Its estimated earnings growth for the current year is 16.9%.
FTI Consulting (FCN)
FTI Consulting is a global consulting and investigative services firm operating in 20 countries. The company specializes in the field of forensic accounting. It has a diverse client base, including large corporations, government agencies, and financial institutions. FTI is one of the largest firms in its industry, with a market cap of $8 billion. It has delivered an average annualized return of over 27% over the past five years. The stock has a Zacks Rank #2 (Buy). Its estimated earnings growth for the current year is 14.9%.
RELX PLC (RELX)
RELX is one of the world’s largest diversified media and information services companies. It owns a diverse range of businesses that operate in the publishing, scientific, risk management, and events industries. RELX operates in over 25 countries, and its products are used daily by millions of people worldwide. It has a market cap of $34 billion. RELX has delivered an average annualized return of over 15% over the past decade. The stock has a Zacks Rank #3 (Hold). Its estimated earnings growth for the current year is 14%.
CBIZ, Inc. (CBZ)
CBZ is a consulting and human resources (HR) services company. It specializes in helping businesses improve their operations and employee engagement. The company has functions in over 20 countries and serves clients in various industries, including marketing, manufacturing, technology, sports, financial services, and government. CBZ is one of the largest firms in its sector, with a market cap of $1.5 billion. It has delivered an average annualized return of over 15% over the past decade. CBZ has a Zacks Rank #3 (Hold). Its estimated earnings growth for the current year is 13.9%.ConclusionThe professional services sector is risky but offers some of the best long-term growth potentials. There are many small and mid-sized companies operating in this space. When you invest in the professional services sector, you expect your stock to produce high returns over the long term. Unfortunately, there are no blue-chip stocks that have proven track records. Even so, with careful research and analysis, there are some great stocks to buy now in 2022 if you invest in the professional services sector.
