Industry Overview - The Zacks Computer - Services industry includes companies providing cloud and software-based solutions, including consulting, research, security, and business support solutions [2] - Participants serve various sectors such as intelligence, defense, government agencies, banking, financial services, insurance, healthcare, and media [2] Current Trends - The shift towards remote and hybrid work is driving demand for cloud and cost-efficient business support solutions, enhancing industry growth prospects [3] - Increasing cyberattacks are creating a heightened need for cybersecurity solutions, particularly within government agencies [4] - Regulatory compliance is becoming more complex, leading to increased demand for services that help businesses adhere to governmental and industry norms [5] Industry Performance - The Zacks Computer - Services industry ranks 47, placing it in the top 19% of over 244 Zacks industries, indicating positive near-term prospects [6][7] - The industry's earnings outlook is optimistic, with a 7.7% increase in the Zacks Consensus Estimate for 2026 earnings since March 31, 2025 [8] Stock Market Performance - Over the past year, the industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500, with a rise of 10.7% versus 19.7% and 27.6% respectively [11] - The industry is currently trading at a forward 12-month P/E of 16.85X, lower than the S&P 500's 23.51X and the sector's 27.94X [14] Notable Companies - **PDF Solutions (PDFS)**: Focuses on data solutions for semiconductor and electronics ecosystems, benefiting from increasing complexity in manufacturing processes and investments in AI-driven collaboration [16][17] - **WidePoint (WYY)**: Provides Technology Management as a Service (TMaaS) and is positioned to benefit from a growing addressable market worth $36 billion, driven by remote work and cybersecurity needs [22][23] - **Forian (FORA)**: Offers data science-driven solutions to healthcare and financial services, with expected revenues between $28 million and $30 million for 2025, indicating a growth of 39-40% from 2024 [26][27]

Group 1: Safran SA - Safran SA is an aerospace and defense company with a Zacks Rank 1, and its current year earnings estimate has increased by 5.5% over the last 60 days [1] - The company's shares have gained 8.8% over the last three months, while the S&P 500 has declined by 6.9% [1] - Safran possesses a Momentum Score of A [1] Group 2: WidePoint Corporation - WidePoint Corporation provides technology management as a service (TMaaS) and has a Zacks Rank 1, with its current year earnings estimate increasing by 108.3% over the last 60 days [2] - The company's shares have gained 34.9% over the last three months, compared to the S&P 500's decline of 6.9% [2] - WidePoint has a Momentum Score of B [2] Group 3: Flotek Industries, Inc. - Flotek Industries, Inc. is a tech-driven green chemistry and data company with a Zacks Rank 1, and its current year earnings estimate has increased by 9.3% over the last 60 days [3] - The company's shares have gained 2.5% over the last six months, while the S&P 500 has declined by 5.7% [3] - Flotek possesses a Momentum Score of B [3]