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Highlights:
- Accenture posted a revenue of US$ 16.2 billion in Q3 2022.
- Airbnb reported assets of US$ 17.82 billion in Q2 2022.
- Kelly Services has over 7,000 employees globally.
US equities markets have seen some surge after many big companies released solid earnings reports. Investor sentiments are expected to pick up during a market rally.
Notably, the US services sector picked up in July, with new orders growing steadily, as revealed by the Institute for Supply Management (ISM) survey.
Services industry stocks like ACN, DXC, INTU, SPGI, and ABNB could be worth exploring. Here, we explore ten stocks along with Kalkine Media® in the services industry and evaluate their performances in the recent period:
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Accenture plc (NYSE:ACN)
Based out of Dublin, Accenture is an Irish American professional services enterprise with a key focus on IT services and consulting.
The company recently collaborated with telecommunications company Swisscom to work on a climate. The implementation of the strategy is expected to reduce Swisscom customers' emissions by one million carbons by 2025.
In its third-quarter earnings report for fiscal 2022, Accenture posted a revenue of US$ 16.2 billion compared to US$ 13.26 billion in the corresponding quarter of the previous year. The Q3 2022 results, which came out on June 23, 2022, reported an operating income of US$ 2.6 billion.
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DXC Technology (NYSE:DXC)
DXC Technology is a US multinational IT services & consulting company with a market cap of US$ 6 billion.
In Q1 2023, the tech company posted a revenue of US$ 3.71 billion. Meanwhile, the diluted earnings per share were US$ 0.43 in Q1 2023.
Shares of DXC tanked over 18 per cent the next day on the results of its Q1 2023 earnings. The DXC stock fell below 21 per cent this year while it tumbled over 32 per cent year over year.
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Intuit Inc. (NASDAQ:INTU)
The US business software company has a market cap of US$ 131.53 billion. Intuit is likely to announce its fourth-quarter results for fiscal 2022 on August 23, 2022.
Intuit Inc. reported a Q3 2022 revenue of US$ 5,632 million compared to US$ 4,173 million in Q3 2021. Its net income in the third quarter of 2022 was US$ 1,794 million, while it was US$ 1,464 million in the same quarter in 2021. The company had an annual dividend rate of US$ 2.72.
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S&P Global Inc. (NYSE:SPGI)
S&P Global is a US credit rating company among the world's three biggest credit rating companies.
S&P Global has a market cap of US$ 128.44 billion and pays a quarterly dividend of US$0.85 per unit. The SPGI stock jumped by over nine per cent in the past month.
The company reported a revenue of US$ 2,993 million in Q2 2022 compared to US$ 2,106 million in Q2 2021. Its Q2 2022 net income jumped 23 per cent to US$ 1,051 million from the previous year's corresponding quarter at US$ 857 million.
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Moody's Corporation (NYSE:MCO)
Moody's Corporation, headquartered in New York, is a US business and financial services company, which is also the holding company of Moody's Investors services.
Moody's reported a revenue of US$ 1,381 million in the second quarter of fiscal 2022 compared to US$ 1,553 million in the year-ago quarter. The operating income in the reported quarter in 2022 was US$ 508 million, while it was US$ 801 in the same period in 2021.
Shares of Moody's fell below six per cent in the last six months. MCO stock plunged over 19 per cent YoY.
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Airbnb Inc. (NASDAQ:ABNB)
A major player in the travel domain, Airbnb is a US company operating a popular online marketplace for accommodation for tourists, homestays, vacation rentals, and other tourism-related services.
The San Francisco, California-based company has a market cap of US$75.87 billion. Airbnb announced its second-quarter earnings results for fiscal 2022 on August 2 and said its total assets were worth US$ 17.82 billion.
The company reported a revenue of US$ 2.11 billion in Q2 2022 compared to US$1.33 billion in Q2 2021.
ABNB stock fell below 30 per cent in 2022. In the past month, it soared over 24 per cent.
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Twitter Inc. (NYSE:TWTR)
The Twitter stock has been on a roller coaster since the takeover deal by Elon Musk. The social media giant company, based in San Francisco, California, has a market cap of US$ 31.42 billion.
Twitter is now embroiled in a legal battle with Tesla chief Elon Musk over the latter's walkout from the US$ 44 billion buyout deal. Shares of Twitter fell below 3.75 per cent in 2022.
Twitter reported revenue of US$ 1.17 billion in the second quarter of fiscal 2022 compared to US$ 1.19 billion in Q2 2021.
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Equifax, Inc. (NYSE:EFX)
The American credit rating company with a global presence has a market cap of US$26.16 billion.
Shares of Equifax fell by 16 per cent over the last year. However, its price has soared close to 15 per cent in the past month.
On July 21, Equifax announced the signing of a definitive agreement to acquire LawLogix, a leading cloud-based I-9 software provider.
Despite a slackening mortgage market, it reported a second-quarter 2022 revenue of US$ 1.317 billion, up seven per cent from the year-ago quarter.
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Kelly Services, Inc. (NASDAQ:KELYA)
The US office staffing company with a global footprint, Kelly Services has its headquarters in Troy, Michigan. It provides employees at every level in various sectors, from financial services to IT and law.
The US$ 815.22 million market cap company has over 7,000 employees globally. Its annual dividend rate is US$ 0.30, and the earnings per share (EPS) is US$2.04.
The KELYA stock surged over 20 per cent in 2022. In its first-quarter earnings, Kelly Services reported revenue from services of US$ 1,296.4 million, compared to US$ 1,205.9 million in the same quarter a year earlier.
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TransUnion (NYSE:TRU)
Part of the triumvirate along with Equifax, TransUnion is another US reporting agency that operates globally. The Illinois, Chicago-based company TransUnion has a market valuation of US$15.30 billion.
TransUnion reported total revenue of US$ 948 million in the second quarter of fiscal 2022, a 30 per cent increase compared to the previous year's same quarter at US$ 728 million.
Shares of TransUnion slid over 31 per cent this year. In the past month, TRU stock saw a decline of 3.4 per cent.
Bottom line:
Stocks in the services industry, as we have seen, returned mixed results. It is arduous for investors to pick stocks in such a situation. And when the markets are volatile, traders are already on the back foot. The services sector may have growing chances to wade through the recessionary winds and give some returns. Investors need to apply due diligence in selecting stocks to invest in when the market is uncertain and volatile.
