The five major information and business services stocks selected by Bank of America

Investing.com – U.S. banks have identified their top stocks in the Information and Business Services sector, focusing on companies with strong growth potential and competitive advantages.

Upgrade to InvestingPro for premium news, in-depth insights, and AI stock selection services

These selected stocks offer investors opportunities to access companies with recurring revenue streams, high switching costs, and resilience against potential AI disruption.

S&P Global (SPGI) ranks first with a buy rating and a target price of $575. The company’s strategic focus and 7-9% targeted organic growth position it favorably for future expansion. SPGI plans to spin off its Mobility business in Q2 2026, aiming to concentrate resources on synergistic growth opportunities.

Analysts expect a favorable environment into 2026, with a peak in long-term refinancing maturing by 2028, declining interest rates, narrowing spreads, and a rebound in M&A activity—all supporting stronger issuance, rating demand, and profit growth. The company’s proprietary data, high switching costs, and regulatory compliance requirements provide protection against AI disruption.

Q4 2025 earnings reported by S&P Global show revenue of $3.92 billion, beating expectations, but EPS of $4.30 slightly below forecasts. Following the earnings release, multiple institutions including UBS, Stifel, and BMO Capital lowered their target prices citing a more subdued outlook.

MSCI (MSCI) ranks second with a buy rating and a $700 target price. As a provider of global indices, analytics, and data solutions, MSCI benefits from deep-rooted benchmarks, high switching costs, and 97% recurring revenue. The company is well-positioned in 2026 as stock market performance shifts from U.S. large caps to broader markets, with global capital flows continuing to rotate outside the U.S.

Since 76% of assets under management linked to MSCI ETFs are non-U.S. assets, demand for MSCI indices is expected to increase in benchmark setting, portfolio construction, and risk assessment. The index business accounts for approximately 57% of revenue and 71% of profits.

Latest news shows MSCI’s Q4 2025 earnings exceeded analyst expectations, with EPS of $4.66 and revenue of $822.5 million.

Fair Isaac (FICO) ranks third with a buy rating and a $1,900 target price. The company’s new mortgage direct licensing program allows mortgage credit bureaus to directly access FICO scores, expanding FICO’s ability to capture value previously retained by credit bureaus, while significantly increasing mortgage score pricing. Four of the top five reporting providers have joined this program.

Scoring business accounts for about 60% of revenue and 80% of operating income. Analysts estimate that each $1 increase in scoring pricing results in an $8 increase in adjusted EPS. Meanwhile, FICO’s software business shows strong growth, with annual recurring revenue (ARR) increasing 50% since 2020.

Fair Isaac Corporation reported Q1 FY2026 earnings and revenue that beat analyst estimates, with non-GAAP EPS of $7.33 and revenue of $512 million.

Aramark (ARMK) ranks fourth with a buy rating and a $50 target price. The company has growth potential through 2026, with accelerated new business activities and record customer retention. Management has increased focus on net new revenue, with 40% of incentive compensation tied to net new business.

Analysts forecast FY2026 revenue of $14 billion, free cash flow of $422 million, driven by strong net new business, high retention rates, and profit margin expansion through supply chain rebates, sales and administrative leverage, and AI-driven efficiency improvements. As leverage improves, capital allocation is expected to remain shareholder-friendly.

Aramark recently reported Q1 FY2026 earnings and revenue exceeding expectations, with organic revenue growth of 5.0%. Following the earnings release, institutions including UBS, Stifel, and Morgan Stanley raised their target prices.

NIQ Global (NIQ) rounds out the top five with a buy rating and a $20 target price. Despite a 37% decline since early February due to AI disruption concerns and COO departure, analysts view this as an overreaction. NIQ is trading at an EV/EBITDA of 6x for 2027 estimates, a 50% discount to the average in the information services sector, even though the company has maintained single-digit growth.

The COO’s departure is believed to be related to contractual terms rather than fundamentals. NIQ will report earnings on February 27, and positive guidance for 2026 could trigger a significant rebound in stock price.

NIQ has launched a new “Behavior Gap Measurement Framework” to help brands track consumer purchasing behavior and has partnered in TikTok’s media mix modeling program.

This article was translated with the assistance of AI. For more information, see our Terms of Use.