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U.S. Professional Services Industry Analysis

UpdatedJun 24, 2026
DataAggregated Company Financials
Companies148
  • 7D-4.1%
  • 3M-4.2%
  • 1Y-26.6%
  • YTD-18.8%

Over the last 7 days, the Professional Services industry has dropped 4.1%, driven by Equifax declining 8.7%. Overall the industry is down 27% in 12 months. 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, 25 Jun 2026US$349.7bUS$247.6bUS$12.1b19.2x28.9x1.4x
Sat, 23 May 2026US$374.7bUS$247.5bUS$12.2b19.3x30.7x1.5x
Mon, 20 Apr 2026US$384.2bUS$246.2bUS$11.5b19.6x33.3x1.6x
Wed, 18 Mar 2026US$386.0bUS$246.0bUS$11.7b19.4x33.1x1.6x
Fri, 13 Feb 2026US$396.3bUS$250.8bUS$12.7b19.1x31.2x1.6x
Sun, 11 Jan 2026US$487.4bUS$251.6bUS$13.9b25.1x35.1x1.9x
Tue, 09 Dec 2025US$467.4bUS$251.8bUS$13.9b24.9x33.7x1.9x
Thu, 06 Nov 2025US$467.2bUS$249.4bUS$15.1b25.1x31x1.9x
Sat, 04 Oct 2025US$499.5bUS$251.4bUS$14.9b26.8x33.4x2x
Mon, 01 Sep 2025US$516.7bUS$251.5bUS$14.7b26.4x35.1x2.1x
Wed, 30 Jul 2025US$511.7bUS$250.4bUS$14.9b23.9x34.3x2x
Fri, 27 Jun 2025US$488.7bUS$244.9bUS$14.9b23.9x32.7x2x
Sun, 25 May 2025US$508.3bUS$244.7bUS$15.0b22.5x33.8x2.1x
Tue, 22 Apr 2025US$470.2bUS$240.7bUS$15.0b19.7x31.3x2x
Thu, 20 Mar 2025US$490.7bUS$241.8bUS$14.8b21.7x33.2x2x
Sat, 15 Feb 2025US$560.5bUS$244.5bUS$14.8b23.5x37.9x2.3x
Mon, 13 Jan 2025US$541.3bUS$245.7bUS$14.8b24x36.5x2.2x
Wed, 11 Dec 2024US$568.5bUS$242.3bUS$15.3b24.8x37.2x2.3x
Fri, 08 Nov 2024US$593.2bUS$247.6bUS$15.3b27x38.9x2.4x
Sun, 06 Oct 2024US$557.2bUS$235.5bUS$12.6b27.8x44.2x2.4x
Tue, 03 Sep 2024US$546.0bUS$234.8bUS$12.8b28.1x42.5x2.3x
Thu, 01 Aug 2024US$526.8bUS$233.9bUS$12.9b27.3x40.8x2.3x
Sat, 29 Jun 2024US$492.5bUS$238.6bUS$12.4b24.6x39.6x2.1x
Mon, 27 May 2024US$500.8bUS$238.7bUS$12.5b24.8x40.2x2.1x
Wed, 24 Apr 2024US$493.6bUS$236.1bUS$11.5b26.5x43x2.1x
Fri, 22 Mar 2024US$506.6bUS$232.9bUS$11.4b26.7x44.3x2.2x
Sun, 18 Feb 2024US$508.7bUS$232.6bUS$12.8b27x39.8x2.2x
Tue, 16 Jan 2024US$501.1bUS$237.0bUS$12.8b26x39.1x2.1x
Thu, 14 Dec 2023US$497.9bUS$237.0bUS$12.7b26.1x39.2x2.1x
Sat, 11 Nov 2023US$461.5bUS$236.3bUS$12.2b23.8x38x2x
Mon, 09 Oct 2023US$491.1bUS$239.1bUS$9.6b23.1x51.4x2.1x
Wed, 06 Sep 2023US$501.0bUS$234.3bUS$9.2b23x54.6x2.1x
Fri, 04 Aug 2023US$500.9bUS$233.9bUS$9.0b22.2x55.7x2.1x
Sun, 02 Jul 2023US$492.0bUS$232.0bUS$9.5b22.3x51.8x2.1x
Price to Earnings Ratio

51.8x


Total Market Cap: US$492.0bTotal Earnings: US$9.5bTotal Revenue: US$232.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Professional Services Industry Price to Earnings3Y Average 38.8x202420252026
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 28.9x which is lower than its 3-year average PE of 38.8x.
  • The 3-year average PS ratio of 2.0x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
  • The earnings for companies in the Professional Services industry have grown 8.4% per year over the last three years.
  • Revenues for these companies have grown 2.2% 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-2.31%
Industrials-0.71%
Professional Services-4.10%
HR Services-1.47%
Research and Consulting Services-6.14%
Industry PE
  • Investors are most optimistic about the HR Services industry, which is trading close to its 3-year average PE ratio of 36.1x.
    • 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 127x.
Forecasted Growth
  • Analysts are most optimistic on the Research and Consulting Services industry, expecting annual earnings growth of 19% over the next 5 years.
  • This is better than its past earnings growth rate of 7.6% 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
TRU TransUnionUS$68.005.5%
+US$686.4m		-23.2%PE18.6x
VRSK Verisk AnalyticsUS$180.062.7%
+US$617.1m		-40.8%PE25.9x
ADP Automatic Data ProcessingUS$219.860.5%
+US$439.7m		-26.3%PE20.2x
EFX EquifaxUS$157.611.8%
+US$329.8m		-38.9%PE26.9x
PCTY Paylocity HoldingUS$103.793.3%
+US$175.6m		-40.9%PE21.5x

Latest News

TRU
US$68.00
TransUnion
7D
5.5%
1Y
-23.2%
Seeking Alpha • 4h

Credit Bureaus Remain Powerful, But TransUnion Offers The Better Setup Over Equifax

Summary TransUnion offers the most compelling risk-adjusted return among credit bureaus, driven by identity, fraud, and international growth optionality. TRU's OneTru platform and exposure to emerging markets, especially India and Mexico, position it for outsized returns if execution is strong. Equifax boasts the strongest single asset with The Work Number, but is more cyclical, less diversified, and currently the most expensive. Experian remains the highest-quality operator, yet its consumer-facing platform faces the greatest AI disruption risk among the three. Read the full article on Seeking Alpha
PAYC
US$127.22
Paycom Software
7D
2.8%
1Y
-42.9%
Seeking Alpha • 4h

Paycom: Transition From Growth To Equity Bond (Rating Upgrade)

Summary Paycom has shifted from a growth story to a value 'equity bond' play after a 50% share price decline over the past year. PAYC now offers an 8.2% pretax earnings yield, with management guiding for 7%–8% revenue growth and a 44% adjusted EBITDA margin in 2026. Management's $2 billion buyback (34% of market cap) financed via credit facility signals strong confidence in long-term profitability and capital return. Risks include further AI-driven revenue cannibalization, but PAYC's high client retention and sticky margins support a strong buy thesis for long-term investors. Read the full article on Seeking Alpha
BAH
US$62.68
Booz Allen Hamilton Holding
7D
-11.8%
1Y
-38.1%
Seeking Alpha • 12h

Booz Allen Hamilton: More Resilient Than The Market Thinks

Summary Booz Allen Hamilton is mispriced amid broad IT services sector weakness, despite its government-focused business model. BAH's defense and intelligence segments remain insulated from AI disruption and benefit from rising U.S. geopolitical activity and defense spending. The recent $720M acquisition of Ultra I&C Mission Solutions strengthens BAH's mission-critical software and cybersecurity capabilities for government clients. With a 10x P/E, sequential revenue growth, and normalization in civilian contracts, BAH offers an attractive entry point as market fears appear overblown. Read the full article on Seeking Alpha
VRSK
US$180.06
Verisk Analytics
7D
2.7%
1Y
-40.8%
PAYX
US$96.38
Paychex
7D
-1.2%
1Y
-30.1%
Narrative Update • Jun 24

PAYX: AI Workforce Tools And Paycor Synergies Will Test Dividend-Supported Resilience

Analysts have nudged the fair value estimate for Paychex higher, with the price target rising from about $102.07 to $105.43 as they factor in potential synergies from the Paycor acquisition, a modestly higher future P/E assumption around 19.7, and the perceived support of the stock's dividend for more defensive investors. Analyst Commentary Recent research on Paychex reflects a mix of optimism around the Paycor acquisition and dividend support, alongside pockets of caution on execution and long term growth assumptions.
CACI
US$462.04
CACI International
7D
-6.6%
1Y
0.2%
LDOS
US$104.32
Leidos Holdings
7D
-4.0%
1Y
-32.2%
ULS
US$92.62
UL Solutions
7D
-1.6%
1Y
31.2%
Narrative Update • Jun 22

ULS: High Conviction Listing And Regulatory Complexity Exposure Will Support Future Upside

Analysts have raised their average price target for UL Solutions to $108.95, reflecting updated assumptions for the discount rate, long-term revenue growth, profit margin, and future P/E in light of recent positive research, including additions to high conviction lists and target increases from major firms. Analyst Commentary Recent research on UL Solutions highlights a mix of enthusiasm and caution, with investors focusing on how the company can sustain growth, deliver consistent execution, and justify its updated valuation profile.
PL
US$26.30
Planet Labs PBC
7D
-6.8%
1Y
385.2%
PCTY
US$103.79
Paylocity Holding
7D
3.3%
1Y
-40.9%
Narrative Update • Jun 22

PCTY: Q1 Execution And Capital Returns Will Support 2026 Upside Potential

Paylocity Holding's analyst price target has been nudged higher by about $2 to reflect slightly revised assumptions around revenue growth, profitability, discount rates, and future P/E expectations, in line with recent mixed but recalibrated target changes from several firms on the Street. Analyst Commentary Recent Street research on Paylocity Holding shows a mix of higher and lower price targets, but the most recent moves include several upward revisions that highlight where bullish analysts see potential in the stock.
PSN
US$48.84
Parsons
7D
-10.9%
1Y
-28.7%
Analysis Article • Jun 19

Parsons (PSN) Stock Could Be 25% Undervalued After Recent Pullback

Parsons (PSN) is back on investor radars after a recent share price pullback, with the stock down 4.8% over the past day and 8.9% over the past week. See our latest analysis for Parsons. Zooming out from the latest pullback, Parsons’ 30 day share price return of 2.47% and 90 day share price return of 4.34% contrast with a year to date share price decline of 16.07%, while the 1 year total shareholder return is down 23.22% but remains positive over three and five years. This suggests that...
FA
US$16.71
First Advantage
7D
5.8%
1Y
1.1%
Narrative Update • Jun 19

FA: Index Additions And Buybacks Will Support Steady 2026 Outlook

Analysts have maintained their average price target for First Advantage at $17.00, citing updated assumptions around a slightly lower discount rate, modestly higher revenue growth, firmer profit margins, and a marginally lower forward P/E multiple as the key drivers behind this reaffirmed view. What’s in the News for First Advantage First Advantage Corporation (NasdaqGS: FA) has been added as a constituent to the S&P 1000 index, according to S&P index classification data.
G
US$28.53
Genpact
7D
-5.9%
1Y
-31.6%
Analysis Article • Jun 19

Genpact (G) Stock Could Be 33.5% Undervalued After Stronger Earnings Forecast

Genpact (G) is back in focus after recent analyst sentiment turned more favorable, with a strong earnings forecast that signals growing confidence in the company’s financial outlook and potential earnings power. See our latest analysis for Genpact. Despite the upbeat earnings forecast, Genpact’s recent share price return has been weak, with the stock down 27% over the past 90 days and the 1 year total shareholder return declining 31.66%. This suggests momentum has faded in the short term, and...
EFX
US$157.61
Equifax
7D
1.8%
1Y
-38.9%
Narrative Update • Jun 17

EFX: Identity Protection Expansion And Q1 Execution Will Support Long Term Earnings Power

Equifax's updated analyst price target now stands slightly lower at about $223. This reflects a modest recalibration of fair value after mixed target changes from several firms, with analysts citing their latest Q1 readthroughs and refreshed views across the business and information services group.
ADP
US$219.86
Automatic Data Processing
7D
0.5%
1Y
-26.3%
Narrative Update • Jun 06

ADP: Dividend Strength And AI Adoption Will Support Repriced Earnings Potential

Analysts have nudged the Automatic Data Processing fair value estimate slightly lower to about $246.33, reflecting updated assumptions for discount rate, revenue growth, margins, and a lower future P/E multiple after a recent mix of reduced price targets and at least one rating upgrade. This frames the current risk/reward as more balanced.
FBYD
US$16.41
Falcon's Beyond Global
7D
10.7%
1Y
213.2%