3 Undervalued IT Services Stocks for Friday, May 29

By Jenna Brashear
May 29, 2026
Diamond graphic indicating best value stocks in their industry
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Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the IT 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 IT 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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3 Undervalued IT Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the IT Services industry for Tuesday, June 02, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the IT Services industry median.

Company Ticker Price/Sales Price/Earnings EV/EBITDA Shareholder Yield Price/Book Value Price/Free Cash Flow Value Grade
Accenture plc ACN 1.61 15.3 12.8 5.1% 3.69 13.4 C
CGI Inc. GIB 0.94 13.0 8.7 3.8% 2.09 7.0 A
Kyndryl Holdings, Inc. KD 0.19 11.9 8.2 1.9% 2.36 9.6 A

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.

Accenture plc’s Value Grade

Value Grade:

Metric Score ACN Industry Median
Price/Sales 42 1.61 1.56
Price/Earnings 38 15.3 19.4
EV/EBITDA 51 12.8 16.2
Shareholder Yield 15 5.1% (1.1%)
Price/Book Value 69 3.69 3.00
Price/Free Cash Flow 34 13.4 14.5

Accenture plc provides strategy and consulting, industry X, song, and technology and operation services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers systems integration and application management; security; intelligent platform; infrastructure; software engineering; data, AI, cloud; and automation and global delivery services. The company also operates business processes for specific enterprise functions, including finance and accounting, sourcing and procurement, supply chain, marketing and sales, and human resources, as well as industry-specific services, such as platform trust and safety, banking, insurance, network and health services; and designs, manufactures, and assembles automation equipment, robotics, and other commercial hardware products. It serves communications, media, and technology; financial services; banking and capital markets, and insurance; health and public service; consumer goods, retail, travel services; industrial; life science; and chemicals, natural resources, energy, and utilities sectors. Accenture plc has collaboration with Amazon Web Services (AWS) to deliver transformative digital services to public sector, defense, and national security organizations. It has a collaboration with OpenAI to help enterprise clients unlock new levels of innovation and growth by bringing agentic AI systems; and has a strategic collaboration with Microsoft and Avanade for the development of an agentic factory intelligence system. It also has strategic partnership with Netomi, Inc. to help enterprises reinvent customer experience using agentic AI systems. Accenture plc was founded in 1951 and is based in Dublin, Ireland.

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.

Accenture plc has a Value Score of 58, which is considered to be fairly valued.

When you look at Accenture plc’s price-to-sales ratio at 1.61 compared to the industry median at 1.56, this company has a higher price relative to revenue compared to its peers. This could make Accenture plc’s stock less attractive for value investors.

Accenture plc’s price-earnings ratio is 15.30 compared to the industry median at 19.40. This means it has a lower share price relative to earnings compared to its peers. This could make Accenture plc more attractive for value investors.

Now, let’s assess Accenture plc’s EV/EBITDA ratio, also known as enterprise multiple. At 12.8, when compared to the industry median of 16.2, 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. Accenture plc’s shareholder yield is higher than its industry median ratio of (1.10%). 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. Accenture plc’s price-to-book ratio is higher than its industry median ratio of 3.00. This could make Accenture plc less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Accenture plc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Accenture plc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.50. This could make Accenture plc more attractive because the lower P/FCF ratio indicates that Accenture plc is fairly valued. 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.

CGI Inc.’s Value Grade

Value Grade:

Metric Score GIB Industry Median
Price/Sales 30 0.94 1.56
Price/Earnings 30 13.0 19.4
EV/EBITDA 28 8.7 16.2
Shareholder Yield 21 3.8% (1.1%)
Price/Book Value 51 2.09 3.00
Price/Free Cash Flow 15 7.0 14.5

CGI Inc. provides information technology and business process services in Western and Southern Europe, the United States, Canada, Scandinavia, Northwest and Central-East Europe, the United Kingdom, Australia, Germany, Finland, Poland, Baltics, and the Asia Pacific. It offers end-to-end services and solutions, including business and strategic IT consulting; systems integration, such as data integration, AI and automation integration, cloud integration, Internet of Things, enterprise application integration, application programming interface integration, and legacy system modernization; managed IT and business process; and application services comprising application management, DevSecOps, application modernization and rationalization, and quality engineering and assurance. The company also provides infrastructure services, which include legacy infrastructure modernization, cloud and hybrid infrastructure management, IT service management, FinOps-enabled cloud management, cyber resilience and compliance, site reliability engineering and AIOps, and infrastructure-as-code; and intellectual property business solutions. It serves banking and capital markets, communications and media, energy and utilities, government, health, insurance, life sciences, manufacturing, retail and consumer services, space, transportation, and logistics industries. The company was formerly known as CGI Group Inc. and changed its name to CGI Inc. in January 2019. CGI Inc. was founded in 1976 and is headquartered in Montreal, Canada.

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.

CGI Inc. has a Value Score of 85, which is considered to be undervalued.

CGI Inc.’s price-earnings ratio is 13.0 compared to the industry median at 19.4. This means that it has a lower price relative to its earnings compared to its peers. This makes CGI Inc. more attractive for value investors.

CGI Inc.’s price-to-book ratio is higher than its peers. This could make CGI Inc. less attractive for value investors when compared to the industry median at 3.00.

You can read more about CGI 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.

Kyndryl Holdings, Inc.’s Value Grade

Value Grade:

Metric Score KD Industry Median
Price/Sales 8 0.19 1.56
Price/Earnings 26 11.9 19.4
EV/EBITDA 25 8.2 16.2
Shareholder Yield 32 1.9% (1.1%)
Price/Book Value 55 2.36 3.00
Price/Free Cash Flow 22 9.6 14.5

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider in the United States, Japan, and internationally. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, healthcare, public, technology, media and telecom, retail, travel, and automotive industries. The company has a strategic alliance with the University of Liverpool for the development of AI-based healthcare technologies. Kyndryl Holdings, Inc. was incorporated in 2020 and is headquartered in New York, New York.

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.

Kyndryl Holdings, Inc. has a Value Score of 88, which is considered to be undervalued.

Kyndryl Holdings, Inc.’s price-earnings ratio is 11.9 compared to the industry median at 19.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Kyndryl Holdings, Inc. more attractive for value investors.

Kyndryl Holdings, Inc.’s price-to-book ratio is higher than its peers. This could make Kyndryl Holdings, Inc. less attractive for value investors when compared to the industry median at 3.00.

You can read more about Kyndryl 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.

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Other IT 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 IT Services stocks as well as other industrys.

Choosing Which of the 3 Best IT 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.

  • Accenture plc stock has a Value Grade of C.
  • CGI Inc. stock has a Value Grade of A.
  • Kyndryl Holdings, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the IT 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.

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Additional Resources About IT Services Stocks

Want to learn more about IT 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.

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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