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.
Click the button below to learn more about A+ Investor and subscribe today.
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 Wednesday, June 24, 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 |
| Amdocs Limited | DOX | 1.22 | 10.5 | 10.4 | 8.8% | 1.64 | 12.7 | A |
| Gartner, Inc. | IT | 1.47 | 12.8 | 16.2 | 9.8% | 138.90 | 7.5 | C |
| Wix.com Ltd. | WIX | 1.14 | 45.9 | na | 4.1% | na | 3.9 | 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.
Amdocs Limited’s Value Grade
Value Grade:
| Metric | Score | DOX | Industry Median |
| Price/Sales | 36 | 1.22 | 1.14 |
| Price/Earnings | 19 | 10.5 | 16.6 |
| EV/EBITDA | 38 | 10.4 | 16.5 |
| Shareholder Yield | 6 | 8.8% | (2.0%) |
| Price/Book Value | 44 | 1.64 | 2.27 |
| Price/Free Cash Flow | 32 | 12.7 | 14.0 |
Amdocs Limited, through its subsidiaries, provides software and services to communications, entertainment, media, and other service providers worldwide. It designs, develops, operates, implements, supports, and markets open and modular cloud offering. The company also provides CES25, a telco-native, GenAI-led customer experience suite, spanning business, and operations and network domains that is embedded with AI and related tools. In addition, it offers GenAI agents, and which include Customer Engagement Platform, a telecom-specific customer relationship management (CRM) solution; Amdocs Monetization Suite which enables customers to monetize their broad set of services and offerings; Amdocs Intelligent Networking Suite, a set of solutions that provide end-to-end service orchestration; Amdocs Charging; Amdocs eSIM Cloud that enables service providers to offer digital SIM (eSIM); Amdocs MarketONE, a based Software-as-a-Service (SaaS)-based platform that includes pre-integrated digital services, ranging from media, gaming, eLearning, sports and retail to security, and business services; and Amdocs connectX, a cloud-native telco-in-a-box software-as-a-service platform for digital telecom brands, as well as Amdocs CatalogONE that spans the entire CES25 suite and combines embedded business intelligence with telecom-specific GenAI agents. Further, the company provides consulting, experience design, data, cloud, network services, delivery, quality engineering, operations, systems integration, and content services to various platforms and technologies; maintenance, enhancement design and development, and operational support services; network deployment and optimization services; and managed services, including AI and related tools, predictive analytics, and robotic process automation, as well as quality engineering, mobile network, cloud, and professional services. Amdocs Limited was founded in 1982 and is headquartered in Saint Louis, Missouri.
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.
Amdocs Limited has a Value Score of 85, which is considered to be undervalued.
When you look at Amdocs Limited’s price-to-sales ratio at 1.22 compared to the industry median at 1.14, this company has a higher price relative to revenue compared to its peers. This could make Amdocs Limited’s stock less attractive for value investors.
Amdocs Limited’s price-earnings ratio is 10.50 compared to the industry median at 16.60. This means it has a lower share price relative to earnings compared to its peers. This could make Amdocs Limited more attractive for value investors.
Now, let’s assess Amdocs Limited’s EV/EBITDA ratio, also known as enterprise multiple. At 10.4, when compared to the industry median of 16.5, 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. Amdocs Limited’s shareholder yield is higher than its industry median ratio of (2.00%). 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. Amdocs Limited’s price-to-book ratio is lower than its industry median ratio of 2.27. This could make Amdocs Limited more attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at Amdocs Limited’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Amdocs Limited’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.00. This could make Amdocs Limited more attractive because the lower P/FCF ratio indicates that Amdocs Limited 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.
Gartner, Inc.’s Value Grade
Value Grade:
| Metric | Score | IT | Industry Median |
| Price/Sales | 41 | 1.47 | 1.14 |
| Price/Earnings | 29 | 12.8 | 16.6 |
| EV/EBITDA | 66 | 16.2 | 16.5 |
| Shareholder Yield | 5 | 9.8% | (2.0%) |
| Price/Book Value | 100 | 138.90 | 2.27 |
| Price/Free Cash Flow | 17 | 7.5 | 14.0 |
Gartner, Inc. provides business and technology insights for decisions and performance on an organization’s mission-critical priorities in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Insights, Conferences, and Consulting. The Research segment delivers insights through subscription services, such as access to published content, data and benchmarks, and direct access to a network of business and technology experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network through its Symposium/Xpo series and peer-driven sessions, as well as conferences focused on specific business roles and topics. The Consulting segment provides technology-driven strategic initiatives, including custom analysis and on-the-ground support to senior executives. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.
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.
Gartner, Inc. has a Value Score of 59, which is considered to be fairly valued.
Gartner, Inc.’s price-earnings ratio is 12.8 compared to the industry median at 16.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Gartner, Inc. more attractive for value investors.
Gartner, Inc.’s price-to-book ratio is lower than its peers. This could make Gartner, Inc. more attractive for value investors when compared to the industry median at 2.27.
You can read more about Gartner, 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.
Wix.com Ltd.’s Value Grade
Value Grade:
| Metric | Score | WIX | Industry Median |
| Price/Sales | 34 | 1.14 | 1.14 |
| Price/Earnings | 82 | 45.9 | 16.6 |
| EV/EBITDA | na | na | 16.5 |
| Shareholder Yield | 19 | 4.1% | (2.0%) |
| Price/Book Value | na | na | 2.27 |
| Price/Free Cash Flow | 8 | 3.9 | 14.0 |
Wix.com Ltd. operates a cloud-based web development platform for registered users and creators in the United States, Europe, Israel, and internationally. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform and Wix Studio, a unified website development platform that enables the creation of advanced websites. It also provides Velo by Wix, a full-stack, no-code/low-code development environment to create content-rich websites and web applications; Wix App Market that offers registered users various free and paid web applications for building, growing, and managing their businesses; Wix Marketplace, which connects users seeking help in creating and managing a website; Wix App, which allows users to manage their websites and Wix operating systems on the go and run their businesses; Spaces by Wix, a mobile app that serves as an interface between site owners and customers; and Wix Customer Care, which provides support and guidance to users throughout the Wix platform. In addition, the company offers Payments by Wix that enables users to accept payments for goods and services both online and in-person; Wix Logo Maker that generates a customizable logo using artificial intelligence; Wix POS, an end-to-end omnichannel solution for online and in-person sales; Branded App by Wix, a native mobile app builder; Base44, an AI-powered platform that builds fully functioning apps; Wixel, an AI-powered visual design platform; Wix Stores; Wix Restaurants; Wix Events; Wix Fitness; Wix Hotels; Wix Music; Wix Showcase; Wix Video; Wix Blog and Wix Forms; Wix Groups; Wix Proposals; Wix Donations; Wix AI Website Builder; Wix AI Text Creator; Wix AI Image Generator; Wix Premium Subscriptions; Email Marketing Subscriptions; Paid Ad Campaigns; Domains; Google Workspace; Gift Cards; and Wix Commerce Solutions, a commerce platform for business owners. Wix.com Ltd. was incorporated in 2006 and is headquartered in Tel Aviv, Israel.
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.
Wix.com Ltd. has a Value Score of 73, which is considered to be undervalued.
Wix.com Ltd.’s price-earnings ratio is 45.9 compared to the industry median at 16.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Wix.com Ltd. less attractive for value investors.
You can read more about Wix.com Ltd.’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 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.
- Amdocs Limited stock has a Value Grade of A.
- Gartner, Inc. stock has a Value Grade of C.
- Wix.com Ltd. stock has a Value Grade of B.
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.
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.
- 3 Undervalued IT Services Stocks for Tuesday, June 23
- Is International Business Machines Corporation (IBM) Overvalued?
- Is Shopify Inc. (SHOP) Overvalued?
- Why Backblaze, Inc.’s (BLZE) Stock Is Up 31.22%
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.
Included With AAII Platinum
Yield Screen: 8.7% Compared to S&P 500
at only 6.9%
Since Inception. Data as of 12/31/2024.
769.3% Stock Superstars Portfolio Total Return Since Inception
U.S. Index ETF (IYY)
SSR Group 3 O'Shaughnessy portfolio has a 411.2% gain since inception performance compared to IYY at only 119.1%% Performance as of 11/29/24.
FREE REPORT
BECOME A MEMBER FOR ONLY $2
Get access to powerful investment discovery tools and a wealth of investment education to help you achieve your financial goals.