Image Source: PixabayTM Editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.The business services sector is starting to stand out among the Zacks Rank #1 (Strong Buy) list with 19 stocks in the space receiving strong buy ratings.Several of these highly ranked business services sector stocks hail from the Zacks Technology Services Industry which is in the top 30% of approximately 250 Zacks industries. Furthermore, now appears to be an ideal time to invest in two of these technology services companies after launching IPOs in recent years.Sofi Technologies (SOFI – Free Report)Trading under $10, Sofi Technologies stock is very enticing given its expansion as a consumer-focused financial platform. Going public in 2021, Sofi is becoming one of the most diverse fintech players in the United States with its offerings including loans, credit cards, investing, insurance, and banking services.More importantly, Sofi is on the cusp of turning a profit with fiscal 2024 earnings now projected at $0.09 per share compared to an adjusted loss of -$0.36 a share last year. Plus, FY25 EPS is expected to soar another 182% to $0.26.Sofi’s rapid top-line expansion also supports its future earnings potential with total sales forecasted to rise 18% this year and expected to climb another 14% in FY25 to $2.81 billion.Image Source: Zacks Investment ResearchQifu Technology (QFIN – Free Report)Launching its IPO last year, Qifu Technology is one of the dominant fintech players in China. As a credit tech platform Qifu provides a comprehensive suite of technology services to assist financial institutions, consumers, and enterprises in the loan life cycle.Notably, Qifu’s stock has soared nearly +60% year to date to impressively top the broader indexes and largely outperform Chinese tech giants Alibaba (BABA – Free Report)  and Baidu (BIDU – Free Report) which are down -8% and -35% respectively.
Image Source: Zacks Investment ResearchInvestor interest in Qifu has swooned as the company is already profitable with annual earnings expected to soar 34% in FY24 to $4.94 per share versus EPS of $3.68 in 2023. Even better, FY25 EPS is projected to rise another 4%. Further indicating more upside in Qifu’s stock is that earnings estimate revisions for FY24 and FY25 have spiked over the last 60 days.Better still, Qifu’s stock trades under $30 at just 5X forward earnings compared to the S&P 500’s 23.7X with Alibaba at 8X and Baidu at 10.1X.
Image Source: Zacks Investment ResearchBottom LineLike Qifu, earnings estimate revisions have remained higher for Sofi as well. Given their strengthening outlook, this makes now an ideal time to buy stock in these up-and-coming technology services companies as they are shaping up to be viable investments for 2024 and beyond.More By This Author:3 Funds To Buy As Consumer Sentiment Makes A Solid Rebound Toll Brothers Surpasses Q3 Earnings And Revenue Estimates Palo Alto Networks Surpasses Q4 Earnings And Revenue Estimates