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U.S. Professional Services Industry Analysis

UpdatedJul 23, 2026
DataAggregated Company Financials
Companies152
  • 7D-1.2%
  • 3M3.3%
  • 1Y-22.2%
  • YTD-12.6%

Over the last 7 days, the Professional Services industry has dropped 1.2%, driven by Automatic Data Processing declining 1.8%. In contrast, ManpowerGroup has gained 32%. However, the industry is down 22% over the past year. Earnings are forecast to grow by 15% annually.

Industry Valuation and Performance

Has the U.S. Professional Services Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 23 Jul 2026US$389.2bUS$250.1bUS$12.6b22.2x31x1.6x
Sat, 20 Jun 2026US$356.6bUS$247.6bUS$12.1b18.7x29.4x1.4x
Mon, 18 May 2026US$363.1bUS$247.8bUS$12.2b18.1x29.8x1.5x
Wed, 15 Apr 2026US$371.3bUS$245.7bUS$11.6b19.2x32.1x1.5x
Fri, 13 Mar 2026US$390.3bUS$246.1bUS$11.7b19.5x33.5x1.6x
Sun, 08 Feb 2026US$424.6bUS$251.0bUS$12.8b21.5x33.1x1.7x
Tue, 06 Jan 2026US$475.3bUS$251.7bUS$13.8b24.8x34.4x1.9x
Thu, 04 Dec 2025US$467.0bUS$251.9bUS$13.9b24.8x33.6x1.9x
Sat, 01 Nov 2025US$465.2bUS$248.4bUS$15.0b25.4x31.1x1.9x
Mon, 29 Sep 2025US$503.2bUS$251.2bUS$15.0b26.1x33.6x2x
Wed, 27 Aug 2025US$517.2bUS$251.5bUS$14.7b26.3x35.1x2.1x
Fri, 25 Jul 2025US$509.0bUS$245.3bUS$14.8b24.2x34.5x2.1x
Sun, 22 Jun 2025US$494.9bUS$244.8bUS$15.0b22.5x33x2x
Tue, 20 May 2025US$521.6bUS$244.5bUS$15.0b23.6x34.9x2.1x
Thu, 17 Apr 2025US$478.4bUS$241.0bUS$15.0b20.2x31.8x2x
Sat, 15 Mar 2025US$475.9bUS$241.7bUS$14.7b21.2x32.3x2x
Mon, 10 Feb 2025US$563.4bUS$249.1bUS$14.9b23.9x37.7x2.3x
Wed, 08 Jan 2025US$546.6bUS$246.0bUS$14.8b24.1x36.8x2.2x
Fri, 06 Dec 2024US$579.9bUS$242.3bUS$15.3b25.2x38x2.4x
Sun, 03 Nov 2024US$567.2bUS$247.8bUS$14.9b27x38.1x2.3x
Tue, 01 Oct 2024US$542.8bUS$235.5bUS$12.6b28.6x43x2.3x
Thu, 29 Aug 2024US$541.7bUS$234.8bUS$12.8b27.6x42.2x2.3x
Sat, 27 Jul 2024US$519.8bUS$237.8bUS$13.0b27.5x40x2.2x
Mon, 24 Jun 2024US$500.2bUS$237.8bUS$12.4b24.8x40.3x2.1x
Wed, 22 May 2024US$514.3bUS$238.4bUS$12.3b25.9x41.9x2.2x
Fri, 19 Apr 2024US$482.7bUS$236.1bUS$11.5b25.9x42.1x2x
Sun, 17 Mar 2024US$496.5bUS$233.1bUS$11.5b26.3x43.3x2.1x
Tue, 13 Feb 2024US$503.5bUS$231.7bUS$12.4b27.1x40.6x2.2x
Thu, 11 Jan 2024US$497.9bUS$237.0bUS$12.7b25.2x39.1x2.1x
Sat, 09 Dec 2023US$489.8bUS$237.0bUS$12.7b25.7x38.6x2.1x
Mon, 06 Nov 2023US$457.0bUS$236.4bUS$7.7b22.5x59.1x1.9x
Wed, 04 Oct 2023US$480.2bUS$239.1bUS$9.6b22.3x50.1x2x
Fri, 01 Sep 2023US$505.1bUS$234.3bUS$9.2b23.9x55x2.2x
Sun, 30 Jul 2023US$476.8bUS$230.6bUS$8.5b21.6x56.4x2.1x
Price to Earnings Ratio

56.4x


Total Market Cap: US$476.8bTotal Earnings: US$8.5bTotal Revenue: US$230.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Professional Services Industry Price to Earnings3Y Average 38.2x202420252026
Current Industry PE
  • Investors are pessimistic on the American Professional Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 31.0x which is lower than its 3-year average PE of 38.2x.
  • The 3-year average PS ratio of 2.0x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
  • The earnings for companies in the Professional Services industry have grown 14% per year over the last three years.
  • Revenues for these companies have grown 2.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Industrials industry?

US Market-1.35%
Industrials-0.71%
Professional Services-1.18%
HR Services-0.42%
Research and Consulting Services-1.72%
Industry PE
  • Investors are most optimistic about the HR Services industry, which is trading close to its 3-year average PE ratio of 36.2x.
    • Analysts are expecting annual earnings growth of 12.7%, which is higher than its past year's earnings growth of 8.8% per year.
  • Investors are most pessimistic about the Research and Consulting Services industry, which is trading below its 3-year average of 106x.
Forecasted Growth
  • Analysts are most optimistic on the Research and Consulting Services industry, expecting annual earnings growth of 18% over the next 5 years.
  • This is better than its past earnings growth rate of 6.8% per year.
  • In contrast, the HR Services industry is expected to see its earnings grow by 13% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
MAN ManpowerGroupUS$51.6632.4%
+US$587.9m		14.6%PE23.1x
RHI Robert HalfUS$40.7010.9%
+US$402.1m		-4.0%PE31.6x
PAYX PaychexUS$110.740.7%
+US$272.3m		-23.8%PE22.4x
BAH Booz Allen Hamilton HoldingUS$66.133.4%
+US$262.7m		-43.0%PE9.4x
BZ KanzhunUS$15.403.4%
+US$223.5m		-22.6%PE13.8x

Latest News

SSNC
US$67.02
SS&C Technologies Holdings
7D
-2.3%
1Y
-19.9%
EFX
US$170.45
Equifax
7D
-0.7%
1Y
-30.7%
BAH
US$66.13
Booz Allen Hamilton Holding
7D
3.4%
1Y
-43.0%
TNET
US$60.03
TriNet Group
7D
4.6%
1Y
-9.0%
BR
US$144.12
Broadridge Financial Solutions
7D
-2.2%
1Y
-40.6%
PAYX
US$110.74
Paychex
7D
0.7%
1Y
-23.8%
Narrative Update • Jul 22

PAYX: FY27 Revenue Outlook Will Drive Downside Risk At Current P E

Analysts have nudged the Paychex fair value estimate higher from $90.00 to $95.00. This reflects updated models that incorporate refined discount rate assumptions, slightly adjusted revenue growth expectations, and a modestly higher projected profit margin and future P/E multiple based on recent price target changes and commentary around the FY27 setup, acquisition synergies, and dividend support.
ULS
US$86.08
UL Solutions
7D
-1.9%
1Y
22.4%
AMTM
US$21.42
Amentum Holdings
7D
3.2%
1Y
-15.7%
KFY
US$78.10
Korn Ferry
7D
4.0%
1Y
5.5%
MAN
US$51.66
ManpowerGroup
7D
32.4%
1Y
14.6%
RHI
US$40.70
Robert Half
7D
10.9%
1Y
-4.0%
PAYC
US$139.30
Paycom Software
7D
-3.8%
1Y
-41.1%
TRU
US$75.40
TransUnion
7D
-2.8%
1Y
-20.3%
ADP
US$243.12
Automatic Data Processing
7D
-1.8%
1Y
-20.1%
Seeking Alpha • Jul 15

Automatic Data Processing: The Margins Are Too High, I'll Pass

Summary Automatic Data Processing maintains dominant market share and high margins in payroll/HR, but these very margins could attract increased competition, especially as AI lowers entry barriers. AI may erode ADP's traditional moat by simplifying regulatory complexity, enabling nimble SaaS competitors and large tech firms to challenge ADP’s position and pricing power. Valuation is currently fair, but margin compression—if, say, net income margins fall from ~22% to 15%—could significantly impact ADP’s valuation and investor returns. I rate ADP a hold, urging investors to monitor margin trends and competitive dynamics, particularly those driven by AI adoption and industry shifts. Read the full article on Seeking Alpha
PL
US$22.60
Planet Labs PBC
7D
-9.2%
1Y
229.4%
BZ
US$15.40
Kanzhun
7D
3.4%
1Y
-22.6%
Seeking Alpha • Jul 11

Kanzhun: AI Risk Looks Too Discounted For This Recruitment Platform

Summary I rate Kanzhun Ltd. (BZ) a buy, as the market underestimates AI’s positive impact on BZ’s recruitment platform. BZ’s two-sided scale and direct chat model create defensible network effects, making it difficult for competitors to replicate its value proposition. Growth will be driven by converting more of BZ’s 36.8 million verified enterprise users into paid customers, especially among SMEs and blue-collar employers. At 10x NTM PE and with mid-teens earnings growth, BZ offers ~50% upside over five years if it executes on monetization and AI-driven improvements. Read the full article on Seeking Alpha