Image Source: FreeImages

The market for commercial services stocks has been booming. The NYSE Arca Commercial Services Index has jumped more than 1,200% since 2010. That’s a much greater return than the S&P 500 or most other sectors have provided investors. Of course, as with most bull markets, commercial services stocks have winners and losers. In addition, several subsectors have performed far better than others. This article will review four of the best commercial services stocks to buy now if you want exposure to this booming sector.

KAR Auction Services (KAR)

KAR Auction Services is one of the best commercial services stocks to buy if you’re interested in the repossession business. In general, repossessions are a necessary part of the commercial finance industry. For example, lenders often need to repossess their collateral when borrowers default. KAR is one of the largest repossession services providers in the world, operating in the United States, Canada, Latin America, and the United Kingdom. Moreover, as the commercial finance industry grows, so does the demand for repossession services. As a result, KAR has performed well over the past several years, with the stock up over 350% since the beginning of 2017.

UniFirst (UNF)\n uniforms

UniFirst is one of the best commercial services stocks to buy if you’re interested in the uniforms industry. The company was founded in 1972 and has since become one of the largest uniform providers in the world. UniFirst is the largest company in the world that focuses exclusively on uniforms. The company operates in over 40 countries and serves various industries, including healthcare, food service, hospitality, government, and more.UniFirst has performed well over the past several years, with the stock up more than 180% since the beginning of 2017. That’s a significantly better return than the other commercial services sector. In addition, uniforms aren’t a cyclical industry, which contributes to the strength of this subsector.

Healthcare Services Group (HCSG) healthcare staffing

Healthcare staffing is a rapidly growing part of the commercial services sector. Healthcare Services Group is one of the leading providers of workforce and management solutions for healthcare companies. The company has been operating for over 25 years and serves many industries, including hospitals, skilled nursing facilities, physician practices, and more. The healthcare staffing industry is expected to see high single-digit revenue and profit growth rates for the foreseeable future. Healthcare Services Group has performed well over the past several years, with the stock up more than 130% since the beginning of 2017. Healthcare staffing has also been a strong subsector within commercial services, even though it’s been quieter than repossession services.

ABM Industries (ABM) cleaning services

ABM Industries is one of the best commercial services stocks to buy if you’re interested in the commercial cleaning services industry. The company was founded in 1960 and has since become one of the world’s largest providers of cleaning services. ABM operates in more than 20 countries and serves many customers. The company also provides other commercial services, such as janitorial supplies, restroom and break room cleaning, carpet cleaning, and window cleaning.ABM Industries has performed very well over the past several years, with the stock up more than 100% since the beginning of 2017. Commercial cleaning services is a booming subsector within commercial services, and ABM is one of the best stocks to buy for exposure to it.

Conclusion

The demand for commercial services will also increase as the economy continues to expand. This means that the stocks in this space should benefit from strong earnings growth in the future. The four stocks listed above are all excellent choices if you’re interested in the commercial services sector.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *