In This Article:
We recently compiled a list of the 10 Best Performing IT Services Stocks to Buy According to Analysts. In this article, we are going to take a look at where N-able, Inc. (NYSE:NABL) stands against the other IT services stocks.
According to research firm Statista, the IT Services industry encompasses a broad range of services and products designed to help organizations manage and optimize their information and business processes. This industry includes managed services, security services, data management, consulting, and cloud computing, all of which play a critical role in today’s digital economy.
As businesses seek greater efficiency and smarter decision-making, IT service providers are increasingly integrating AI-driven solutions into their offerings. A mid-2024 Statista report projects that the IT Services market will generate $1.5 trillion in revenue by 2025, reflecting significant growth. Within this market, IT Outsourcing is expected to dominate, with a projected market size of $591 billion in the same year. Additionally, companies are accelerating their digital transformation initiatives to stay competitive, driving demand for IT consulting and implementation services. Statista forecasts this segment to reach $79 billion in 2025 and expand further to $93 billion by 2029, growing at a CAGR of 4.2% over the period.
The S&P 500 IT Services Index has experienced volatility compared to the broader S&P 500 benchmark index. Over the past 1-year, the IT Services sector has underperformed (8.4% return vs. 16.8% for the benchmark). However, over a three-year horizon, it has outperformed, highlighting the sector’s long-term resilience. While it may not generate the same excitement as semiconductors or software, IT Services remain closely linked to overall technology growth and continue to deliver steady returns.
IT service providers play a pivotal role in helping businesses streamline operations, enhance customer experiences, and maintain a competitive edge in an increasingly digital landscape. Organizations are also relying more on external expertise to navigate complex technological challenges, further boosting demand for IT services.
Our Methodology
To determine the 10 best performing IT services stocks to buy according to analysts, we began by screening all U.S.-listed IT Services companies with a market capitalization above $300 million, to eliminate smaller and more volatile stocks. Next, we sorted the companies based on their year-to-date (YTD) returns. Further, we selected companies which have a potential upside of 10% or more. Finally, we ranked the top 10 stocks based on YTD returns, placing the highest-performing ones at the top. Additionally, we also included data on hedge fund holdings in these companies as of Q4 2024 to provide further insight into investor interest.