The latest ISM Services Index reading points to a US services sector that is still expanding, but with signs of cooling demand and shifting cost pressures. For investors, that mix of steady growth, moderating activity, and cooler input costs can change how certain service stocks look on a risk and reward basis. This article unpacks what that backdrop might mean for companies in our US Services Sector Stocks screener and highlights 3 stocks that appear positively exposed to these conditions, helping you decide whether they deserve a closer look or a spot on your watchlist.

Insperity (NSP)

Overview: Insperity is a US based HR services company that helps small and mid sized businesses handle payroll, benefits, compliance and workforce management through bundled platforms like HR360, HRCore and HRScale, often acting as an outsourced HR department.

Operations: Insperity generates approximately US$6.8b in revenue from HR Solutions, all from clients in the United States.

Market Cap: US$1.7b

Insperity gives you exposure to the US services and employment cycle at a time when the ISM Services Index is still expanding and sector hiring has just started to pick up again, which directly feeds into the company’s paid worksite employees. The stock trades on a low P/S multiple versus peers. Analysts see a path to earnings recovery as HRScale and AI driven offerings target larger mid market clients and more complex HR needs. At the same time, investors need to weigh up persistent healthcare cost pressure, reliance on smaller businesses with cautious hiring plans, funding entirely from external borrowing and a dividend that is not covered by earnings, all while the company works to restore margins and turn forecast growth into sustainable profitability.

Insperity’s low P/S and push into AI driven HRScale offerings could be masking a much bigger swing in risk and reward, so review the 3 key rewards and 2 important warning signs (1 is major!)

Kelly Services (KELY.A)

Overview: Kelly Services is a global staffing and workforce solutions company that matches workers with employers across office, industrial, science, engineering, technology and education roles, as well as running outsourced recruitment and talent programs for large clients.

Operations: Kelly Services generates about US$1.94b from Enterprise Talent Management, US$1.20b from Science, Engineering & Technology and US$1.0b from Education, with most revenue coming from the United States and the rest from Europe, Asia Pacific and other Americas.

Market Cap: US$482.9m

Kelly Services offers exposure to US services employment at a time when the ISM Services Index is still expanding and sector hiring has turned positive again. This directly links its revenue to changes in job creation, while cooler wage inflation and input costs may help protect margins. The company trades on low sales-based valuation metrics, is pushing further into higher-margin outsourced MSP and RPO contracts, and is investing in AI-enabled analytics and digital platforms under a new Chief Product and Technology Officer. At the same time, it is still loss making, with return on equity in decline, a dividend that is not covered by earnings, revenue pressure from large clients and visible insider selling. Investors therefore need to weigh the potential upside from executing its second half 2026 plan against the risk that earnings and margins take longer to stabilise than the market currently expects.

Kelly Services looks like a classic “turnaround in progress,” with low sales based valuation metrics and a push into higher margin contracts as the potential swing factor, so it is worth seeing what the 4 key rewards and 2 important warning signs hints at next

Fiverr International (FVRR)

Overview: Fiverr International runs a global online marketplace that connects businesses of all sizes with freelancers and agencies offering digital services such as design, content creation, software development and marketing, alongside value added tools like Fiverr Ads, Seller Plus subscriptions, dropshipping automation and financial services for sellers.

Operations: Fiverr International generates about US$429.2m in revenue from Internet Software & Services through its online marketplace and value added tools.

Market Cap: US$388.6m

Fiverr International stands out in the US Services Sector Stocks screener because it sits at the intersection of growing demand for flexible professional services and the rise of AI powered work tools. This comes at a time when the ISM Services Index signals continued expansion and stronger services employment. Earnings have grown faster than revenue, net margins have improved to 6.7%, and the stock trades at a P/E below the US Professional Services industry average. However, guidance flags revenue pressure and funding relies entirely on external borrowing. There is also strong growth in higher value projects and AI driven matching tools, but insider selling and a recent one off loss add to the picture. Overall, this creates a complex risk reward profile that may warrant closer examination before drawing any conclusions.

Fiverr International’s improving margins and below industry P/E suggest that the market may be overlooking how its AI powered marketplace could reshape earnings quality, so review the analysis report for Fiverr International to see what might be hiding in plain sight

The three US services stocks covered here are just a starting point, because the full US Services Sector Stocks screener surfaces 30 more companies with equally compelling narratives that could fit very different portfolios. Use Simply Wall St to identify and analyze the specific catalysts, financial profiles and storylines that matter most to you so you can focus on the highest conviction opportunities in this part of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.