Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Professional Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.
Why Focus on Undervalued Professional Services Stocks?
Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.
AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
What Goes Into AAII’s Value Grade?
Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.
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5 Undervalued Professional Services Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Professional Services industry for Friday, February 20, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Professional Services industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| KBR, Inc. | KBR | 0.70 | 13.5 | 11.0 | 5.3% | 3.73 | 15.4 | B |
| Korn Ferry | KFY | 1.16 | 12.8 | 7.6 | 3.5% | 1.67 | 18.3 | B |
| Leidos Holdings, Inc. | LDOS | 1.33 | 15.8 | 10.4 | 5.5% | 4.53 | 16.0 | B |
| ManpowerGroup Inc. | MAN | 0.08 | na | 10.1 | 7.3% | 0.67 | na | A |
| TriNet Group, Inc. | TNET | 0.42 | 13.3 | 13.6 | 6.6% | 37.44 | 11.3 | B |
The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.
The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)
Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).
As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.
KBR, Inc.’s Value Grade
Value Grade:
| Metric | Score | KBR | Industry Median |
| Price/Sales | 25 | 0.70 | 0.87 |
| Price/Earnings | 28 | 13.5 | 20.8 |
| EV/EBITDA | 40 | 11.0 | 14.1 |
| Shareholder Yield | 14 | 5.3% | 0.0% |
| Price/Book Value | 71 | 3.73 | 2.76 |
| Price/Free Cash Flow | 39 | 15.4 | 17.2 |
KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. It operates through Government Solutions and Sustainable Technology Solutions segments. The company offers research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, data analytics and integration, systems integration and program management, global supply chain management, operations readiness and support, and professional advisory services, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies. It also operates portfolio of various proprietary process technologies for ammonia/syngas, chemical/petrochemicals, clean refining, and circular process/circular economy solutions. In addition, the company provides synergistic services, including energy security, broad-based energy transition and net-zero carbon emission solutions, high-end engineering, design and program management centered around decarbonization, energy efficiency, and environmental impact and asset optimization, as well as digitally-enabled operating and monitoring solutions. KBR, Inc. was founded in 1901 and is headquartered in Houston, Texas.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
KBR, Inc. has a Value Score of 72, which is considered to be undervalued.
When you look at KBR, Inc.’s price-to-sales ratio at 0.70 compared to the industry median at 0.87, this company has a lower price relative to revenue compared to its peers. This could make KBR, Inc.’s stock more attractive for value investors.
KBR, Inc.’s price-earnings ratio is 13.50 compared to the industry median at 20.80. This means it has a lower share price relative to earnings compared to its peers. This could make KBR, Inc. more attractive for value investors.
Now, let’s assess KBR, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 11.0, when compared to the industry median of 14.1, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.
Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. KBR, Inc.’s shareholder yield is higher than its industry median ratio of 0.00%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.
As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. KBR, Inc.’s price-to-book ratio is higher than its industry median ratio of 2.76. This could make KBR, Inc. less attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at KBR, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. KBR, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 17.20. This could make KBR, Inc. more attractive because the lower P/FCF ratio indicates that KBR, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.
Korn Ferry’s Value Grade
Value Grade:
| Metric | Score | KFY | Industry Median |
| Price/Sales | 36 | 1.16 | 0.87 |
| Price/Earnings | 26 | 12.8 | 20.8 |
| EV/EBITDA | 22 | 7.6 | 14.1 |
| Shareholder Yield | 22 | 3.5% | 0.0% |
| Price/Book Value | 44 | 1.67 | 2.76 |
| Price/Free Cash Flow | 46 | 18.3 | 17.2 |
Korn Ferry, together with its subsidiaries, engages in the provision of organizational consulting services worldwide. The company offers consulting services for talent strategies, organizational structures, and workforce capabilities; and develops, integrate, and commercializes with Korn Ferry Talent suite, as well as enabling technology across Korn Ferry's other solution areas. The company operates cloud human resources platforms comprising Korn Ferry Architect, for providing organization and talent planning architecture for an agile and future-focused workforce; Korn Ferry Assess, for empowering leaders to take actions that lead to business success; Korn Ferry Listen, for deploying engagement surveys and benchmark employee engagement; Korn Ferry Sell, for developing and replicating sales strategies; and Korn Ferry Pay, a self-service pay solution, that provides global data and insights needed in real-time to make decisions on employee compensation programs. It serves public and private companies, consumer markets, financial services, healthcare, life sciences, industrial, technology, and specialties sectors. The company was formerly known as Korn/Ferry International and changed its name to Korn Ferry in January 2019. Korn Ferry was founded in 1969 and is based in Los Angeles, California.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Korn Ferry has a Value Score of 79, which is considered to be undervalued.
Korn Ferry’s price-earnings ratio is 12.8 compared to the industry median at 20.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Korn Ferry more attractive for value investors.
Korn Ferry’s price-to-book ratio is higher than its peers. This could make Korn Ferry less attractive for value investors when compared to the industry median at 2.76.
You can read more about Korn Ferry’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Leidos Holdings, Inc.’s Value Grade
Value Grade:
| Metric | Score | LDOS | Industry Median |
| Price/Sales | 39 | 1.33 | 0.87 |
| Price/Earnings | 37 | 15.8 | 20.8 |
| EV/EBITDA | 37 | 10.4 | 14.1 |
| Shareholder Yield | 13 | 5.5% | 0.0% |
| Price/Book Value | 75 | 4.53 | 2.76 |
| Price/Free Cash Flow | 41 | 16.0 | 17.2 |
Leidos Holdings, Inc., together with its subsidiaries, provides services and solutions for government and commercial customers in the United States and internationally. The National Security & Digital segment provides national security software; services by using artificial intelligence and machine learning to coordinate sea, ground, air, and space to help warfighters; offensive, defensive, and physical cyber operation solutions; intelligence analysis, operational support, logistics operations, security, linguistics, force production, biometrics, chemical, biological, radiological, nuclear, and explosives, energetics, training, and other services; and Digital Modernization and transformation services. The Health & Civil segment offers air traffic control systems; health mission software; managed health services; infrastructure management and operation; logistical operations and information technology support; and life science research and development support services. The Commercial & International segment provides power grid engineering and design, grid modernization, utility planning and consulting, energy management and efficiency, technology-driven innovation, and software and application development; people scanners, computed tomography carry-on baggage scanners, checked baggage scanners, and explosive trace detectors; mobile, non-intrusive ports and borders inspection systems; and open-architecture platform that transforms airport security by integrating disparate devices and technologies into a unified management system. The Defense Systems segment offers air and missile defense, maritime, aerospace, and cyber and threat systems; offers airborne training, intelligence, surveillance, and reconnaissance missions; and provides space-based electro-optic infrared systems, multi/hyperspectral, electronic warfare and signals intelligence, and communications payloads. Leidos Holdings, Inc. was founded in 1969 and is headquartered in Reston, Virginia.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Leidos Holdings, Inc. has a Value Score of 64, which is considered to be undervalued.
Leidos Holdings, Inc.’s price-earnings ratio is 15.8 compared to the industry median at 20.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Leidos Holdings, Inc. more attractive for value investors.
Leidos Holdings, Inc.’s price-to-book ratio is lower than its peers. This could make Leidos Holdings, Inc. more attractive for value investors when compared to the industry median at 2.76.
You can read more about Leidos Holdings, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
ManpowerGroup Inc.’s Value Grade
Value Grade:
| Metric | Score | MAN | Industry Median |
| Price/Sales | 4 | 0.08 | 0.87 |
| Price/Earnings | na | na | 20.8 |
| EV/EBITDA | 35 | 10.1 | 14.1 |
| Shareholder Yield | 9 | 7.3% | 0.0% |
| Price/Book Value | 13 | 0.67 | 2.76 |
| Price/Free Cash Flow | na | na | 17.2 |
ManpowerGroup Inc. provides workforce solutions and services under the Talent Solutions, Manpower, and Experis brands worldwide. The company offers recruitment services, including permanent, temporary, and contract recruitment of professionals, as well as administrative, industrial, and information technology professional positions; assessment, upskilling, reskilling, career management, workforce consulting, and training and development services; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives. It also offers contingent staffing and permanent recruitment services; information technology professional resourcing and project services; and recruitment process outsourcing and management solutions, as well as TAPFIN, a managed service provider solution. The company was founded in 1948 and is headquartered in Milwaukee, Wisconsin.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
ManpowerGroup Inc. has a Value Score of 98, which is considered to be undervalued.
ManpowerGroup Inc.’s price-to-book ratio is higher than its peers. This could make ManpowerGroup Inc. less attractive for value investors when compared to the industry median at 2.76.
You can read more about ManpowerGroup Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
TriNet Group, Inc.’s Value Grade
Value Grade:
| Metric | Score | TNET | Industry Median |
| Price/Sales | 17 | 0.42 | 0.87 |
| Price/Earnings | 28 | 13.3 | 20.8 |
| EV/EBITDA | 53 | 13.6 | 14.1 |
| Shareholder Yield | 10 | 6.6% | 0.0% |
| Price/Book Value | 98 | 37.44 | 2.76 |
| Price/Free Cash Flow | 27 | 11.3 | 17.2 |
TriNet Group, Inc. provides comprehensive human capital management services for small and medium-sized businesses in the United States. The company offers multi-state payroll processing and tax administration; employee benefits programs, including health insurance and retirement plans; workers' compensation insurance and claims management; employment and benefits law compliance; and other HR related services. It also provides a technology platform, an online and mobile tool that allows users to store, view, and manage HR information and administer various HR transactions, such as payroll processing, tax administration and credits, employee onboarding and termination, employee performance, time and attendance, compensation reporting, expense management, and benefits enrollment and administration, as well as incorporated workforce analytics and allows professional employer organization and administrative services offering clients to generate HR data, payroll, compensation, and other custom reports. The company serves clients in various industries, including technology, professional services, financial services, life sciences, and not-for-profit. It sells its solutions through its direct sales organization. TriNet Group, Inc. was incorporated in 1988 and is headquartered in Dublin, California.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
TriNet Group, Inc. has a Value Score of 67, which is considered to be undervalued.
TriNet Group, Inc.’s price-earnings ratio is 13.3 compared to the industry median at 20.8. This means that it has a lower price relative to its earnings compared to its peers. This makes TriNet Group, Inc. more attractive for value investors.
TriNet Group, Inc.’s price-to-book ratio is lower than its peers. This could make TriNet Group, Inc. more attractive for value investors when compared to the industry median at 2.76.
You can read more about TriNet Group, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Other Professional Services Stock Grades
Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.
Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Professional Services stocks as well as other industrys.
Choosing Which of the 5 Best Professional Services Stocks Is Right for You
Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.
- KBR, Inc. stock has a Value Grade of B.
- Korn Ferry stock has a Value Grade of B.
- Leidos Holdings, Inc. stock has a Value Grade of B.
- ManpowerGroup Inc. stock has a Value Grade of A.
- TriNet Group, Inc. stock has a Value Grade of B.
Now that you have a bit more background about each of the 5 undervalued stocks in the Professional Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
Additional Resources About Professional Services Stocks
Want to learn more about Professional Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.
- 5 Undervalued Professional Services Stocks for Friday, February 20
- 5 Undervalued Professional Services Stocks for Thursday, February 19
- Why Alight, Inc.’s (ALIT) Stock Is Down 31.30%
- Why Alight, Inc.’s (ALIT) Stock Is Down 39.69%
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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