3 Undervalued IT Services Stocks for Friday, June 05

By Michael Rose
June 05, 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 Monday, June 08, 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
CI&T; Inc. CINT 1.02 12.7 9.5 4.0% 1.60 13.2 A
Globant S.A. GLOB 0.67 16.7 20.4 (5.7%) 0.80 6.0 B
Kyndryl Holdings, Inc. KD 0.18 13.7 5.5 2.9% 2.20 7.8 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.

CI&T; Inc.’s Value Grade

Value Grade:

Metric Score CINT Industry Median
Price/Sales 32 1.02 1.40
Price/Earnings 29 12.7 17.7
EV/EBITDA 33 9.5 16.7
Shareholder Yield 20 4.0% (1.1%)
Price/Book Value 43 1.60 2.54
Price/Free Cash Flow 35 13.2 14.6

CI&T; Inc., together with its subsidiaries, provides strategy, design, and software engineering services in North America, Europe, Latin America, Asia Pacific, and worldwide. It is also involved in the development of customizable software through the implementation of software solutions, including machine learning, artificial intelligence, data analytics, cloud migration, and mobility technologies. The company offers business and digital strategy, working closely with clients to understand strategic objectives, organizational constraints, and market dynamics; customer-centered experience and design, analyze customer and user journeys to design digital products, services, and platforms that improve efficiency, engagement, and satisfaction; and software engineering and platform delivery solutions, that designs, builds, modernizes, and operates digital platforms using agile, Lean, and DevOps practices. CI&T; Inc. was founded in 1995 and is headquartered in Campinas, Brazil.

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.

CI&T; Inc. has a Value Score of 81, which is considered to be undervalued.

When you look at CI&T; Inc.’s price-to-sales ratio at 1.02 compared to the industry median at 1.40, this company has a lower price relative to revenue compared to its peers. This could make CI&T; Inc.’s stock more attractive for value investors.

CI&T; Inc.’s price-earnings ratio is 12.70 compared to the industry median at 17.70. This means it has a lower share price relative to earnings compared to its peers. This could make CI&T; Inc. more attractive for value investors.

Now, let’s assess CI&T; Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 9.5, when compared to the industry median of 16.7, 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. CI&T; Inc.’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. CI&T; Inc.’s price-to-book ratio is lower than its industry median ratio of 2.54. This could make CI&T; Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at CI&T; Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. CI&T; Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.60. This could make CI&T; Inc. more attractive because the lower P/FCF ratio indicates that CI&T; 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.

Globant S.A.’s Value Grade

Value Grade:

Metric Score GLOB Industry Median
Price/Sales 24 0.67 1.40
Price/Earnings 43 16.7 17.7
EV/EBITDA 77 20.4 16.7
Shareholder Yield 69 (5.7%) (1.1%)
Price/Book Value 16 0.80 2.54
Price/Free Cash Flow 13 6.0 14.6

Globant S.A., together with its subsidiaries, provides technology services in the United States, rest of North America, Latin America, Europe, and internationally. The company offers Digital Studio, which integrates artificial intelligence into the software development; GUT Studio, which allows clients to better connect brands; and Enterprise Studio, which leverages technology for streamlined operations and productivity. It also provides AI Industry Studios for the financial services; media, entertainment, sports, and leisure; healthcare and life sciences; CPG, retail, and automotive; gaming and EdTech; airlines; energy, oil, and gas; and high tech and professional services sectors. In addition, the company offers AI Pods, a subscription-based delivery model for AI-powered services; Globant Enterprise AI, an agentic innovation platform; Corporate Hub, which grounds intelligence in how the organization operates; AI Hub, which connects and governs foundation and custom models, continuous evaluation, and optimization; and Agents Hub, which enables autonomous action through the creation and coordination of agents and agentic workflows. Further, it provides GeneXus for enterprise systems evolution; Globant CODA for software development; Navigate Digital Twin for process optimization; Navigate Service Assist for support; and Fusion, for marketing, communications, and advertising, as well as StarMeUp, an employee engagement and talent experience platform; and DaXia, an embedded finance accelerator platform. Globant S.A. has a strategic collaboration with Pharma Mar, S.A. for cancer drug discovery through artificial intelligence; and Viability and Cascadience LLC to launch AI-powered platform for students with disabilities. The company was formerly known as IT Outsourcing S.L. and changed its name to Globant S.A. in December 2012. Globant S.A. was founded in 2003 and is based in Luxembourg, Luxembourg.

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.

Globant S.A. has a Value Score of 64, which is considered to be undervalued.

Globant S.A.’s price-earnings ratio is 16.7 compared to the industry median at 17.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Globant S.A. more attractive for value investors.

Globant S.A.’s price-to-book ratio is higher than its peers. This could make Globant S.A. less attractive for value investors when compared to the industry median at 2.54.

You can read more about Globant S.A.’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 0.18 1.40
Price/Earnings 33 13.7 17.7
EV/EBITDA 12 5.5 16.7
Shareholder Yield 26 2.9% (1.1%)
Price/Book Value 54 2.20 2.54
Price/Free Cash Flow 18 7.8 14.6

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider in the United States, Japan, and internationally. It offers cloud services; core enterprise services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. The company serves financial, healthcare, public, technology, media and telecom, retail, travel and logistics, and automotive manufacturer industries. 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 90, which is considered to be undervalued.

Kyndryl Holdings, Inc.’s price-earnings ratio is 13.7 compared to the industry median at 17.7. 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 2.54.

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.

Learn More About A+ Investor

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.

  • CI&T; Inc. stock has a Value Grade of A.
  • Globant S.A. stock has a Value Grade of B.
  • 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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