3 Undervalued IT Services Stocks for Monday, July 27

By Jenna Brashear
July 27, 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, July 28, 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
Everforth, Inc. EFOR 0.23 9.5 9.9 5.5% 0.50 3.2 A
EPAM Systems, Inc. EPAM 0.94 13.5 8.8 5.3% 1.45 9.6 A
GDS Holdings Limited GDS 0.48 16.4 9.1 (10.2%) 1.48 na 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.

Everforth, Inc.’s Value Grade

Value Grade:

Metric Score EFOR Industry Median
Price/Sales 9 0.23 1.24
Price/Earnings 13 9.5 16.4
EV/EBITDA 36 9.9 16.2
Shareholder Yield 13 5.5% (1.0%)
Price/Book Value 8 0.50 2.55
Price/Free Cash Flow 6 3.2 13.2

Everforth, Inc. provides information technology solutions for commercial and government sectors in the United States, Canada, and Europe. It operates through two segments: Commercial and Federal Government. The Commercial Segment provides consulting, creative digital marketing, and permanent placement services primarily to Fortune 1000 and mid-market companies across harmonized solutions areas, such as cloud and infrastructure, data and AI, software development and engineering, customer experience, cybersecurity, and enterprise platforms, as well as key industries consists financial services, consumer and industrial, technology, media and telecom, healthcare, and business and government services. The Federal Government Segment provides advanced IT solutions in data and AI, cybersecurity, and enterprise platforms to defense and intelligence, national security, federal civilian, and other clients in the public and private sectors. It provides its products under the Apex Systems, Creative Circle, CyberCoders, ECS, GlideFast, and TopBloc brand names. The company was formerly known as ASGN Incorporated and changed its name to Everforth, Inc. in April 2026. The company was founded in 1985 and is headquartered in Glen Allen, 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.

Everforth, Inc. has a Value Score of 98, which is considered to be undervalued.

When you look at Everforth, Inc.’s price-to-sales ratio at 0.23 compared to the industry median at 1.24, this company has a lower price relative to revenue compared to its peers. This could make Everforth, Inc.’s stock more attractive for value investors.

Everforth, Inc.’s price-earnings ratio is 9.50 compared to the industry median at 16.40. This means it has a lower share price relative to earnings compared to its peers. This could make Everforth, Inc. more attractive for value investors.

Now, let’s assess Everforth, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 9.9, 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. Everforth, Inc.’s shareholder yield is higher than its industry median ratio of (1.00%). 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. Everforth, Inc.’s price-to-book ratio is lower than its industry median ratio of 2.55. This could make Everforth, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Everforth, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Everforth, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 13.20. This could make Everforth, Inc. more attractive because the lower P/FCF ratio indicates that Everforth, 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.

EPAM Systems, Inc.’s Value Grade

Value Grade:

Metric Score EPAM Industry Median
Price/Sales 30 0.94 1.24
Price/Earnings 31 13.5 16.4
EV/EBITDA 30 8.8 16.2
Shareholder Yield 14 5.3% (1.0%)
Price/Book Value 38 1.45 2.55
Price/Free Cash Flow 21 9.6 13.2

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; cloud services for creating a roadmap to set and refine IT and business goals while identifying new and emerging opportunities leveraging cloud technologies; data, analytics and artificial intelligence; customer experience; marketing; and cybersecurity. It also offers operation solutions comprising integrated engineering practices and smart automation services. In addition, the company offers software product and platform development services, which comprise product research, customer experience design and prototyping, program management, component design and integration, full lifecycle software testing, product deployment and end-user customization, performance tuning, product support and maintenance, managed services, as well as cross-platform migration and modernizing legacy platforms. The company serves the financial services; consumer goods, retail and travel; software and Hi-tech; business information and media, life sciences and healthcare; and emerging verticals industries EPAM Systems, Inc. was founded in 1993 and is headquartered in Newtown, Pennsylvania.

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.

EPAM Systems, Inc. has a Value Score of 88, which is considered to be undervalued.

EPAM Systems, Inc.’s price-earnings ratio is 13.5 compared to the industry median at 16.4. This means that it has a lower price relative to its earnings compared to its peers. This makes EPAM Systems, Inc. more attractive for value investors.

EPAM Systems, Inc.’s price-to-book ratio is higher than its peers. This could make EPAM Systems, Inc. less attractive for value investors when compared to the industry median at 2.55.

You can read more about EPAM Systems, 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.

GDS Holdings Limited’s Value Grade

Value Grade:

Metric Score GDS Industry Median
Price/Sales 18 0.48 1.24
Price/Earnings 40 16.4 16.4
EV/EBITDA 32 9.1 16.2
Shareholder Yield 75 (10.2%) (1.0%)
Price/Book Value 39 1.48 2.55
Price/Free Cash Flow na na 13.2

GDS Holdings Limited, together with its subsidiaries, engages in the development and operation of data centers in the People's Republic of China. It provides colocation services comprising critical facilities space, customer-available power, racks, and cooling; managed hosting services, including business continuity and disaster recovery, network management, data storage, system security, operating system, database, and server middleware services; managed cloud services; and consulting services. The company serves cloud service providers, large Internet companies, financial institutions, telecommunications carriers and IT service providers, large domestic private sector, and multinational corporations. GDS Holdings Limited was founded in 2001 and is headquartered in Shanghai, the People's Republic of China.

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.

GDS Holdings Limited has a Value Score of 64, which is considered to be undervalued.

GDS Holdings Limited’s price-earnings ratio is 16.4 compared to the industry median at 16.4. This means that it has a higher price relative to its earnings compared to its peers. This makes GDS Holdings Limited fairly attractive for value investors.

GDS Holdings Limited’s price-to-book ratio is higher than its peers. This could make GDS Holdings Limited less attractive for value investors when compared to the industry median at 2.55.

You can read more about GDS Holdings Limited’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.

  • Everforth, Inc. stock has a Value Grade of A.
  • EPAM Systems, Inc. stock has a Value Grade of A.
  • GDS Holdings Limited 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.

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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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