The US market has a plethora of promising growth stocks that investors can choose from.
In particular, the services sector deserves a second look.
Companies within this space may qualify as great investments as they do not have to deal with inventory and production.
They may also be valuable if they possess a strong brand and sturdy business model.
Here are four attractive service companies that you can consider adding to your buy watchlist.
Royal Caribbean International (NYSE: RCL)
Royal Caribbean International, or RCI, is a cruise company with a global fleet of 68 ships across five brands, such as Silversea, Celebrity Cruises, and Royal Caribbean.
For the first half of 2025 (1H 2025), revenue rose nearly 9% year on year to US$8.5 billion.
The company’s operating profit climbed 23.1% year on year to US$2.3 billion while net profit surged almost 60% year on year to US$1.9 billion.
For the half year, RCI carried almost 10% more passengers than it did a year ago, at 4.5 million.
The business also churned out free cash flow of US$2.1 billion, more than four times that of the previous year’s US$519 million.
RCI upped its quarterly dividend sharply by 87.5% year on year to US$0.75 per share on account of the strong results.
Management provided an optimistic outlook for 2025 and expects the adjusted earnings per share to grow by around 31% year on year to US$15.41 to US$15.55.
They also see a preference towards more frequent vacations and a greater focus on meaningful, experience-driven travel, which bodes well for RCI to take more market share in the US$2 trillion global vacation market.
Airbnb (NASDAQ: ABNB)
Airbnb operates a platform that matches guests who are looking for a place to stay with hosts who put up their properties for short-term stays.
Since its founding in 2007, the company’s platform has grown to over five million hosts that have welcomed two billion guests.
For the first quarter of 2025 (1Q 2025) ending 31 March 2025, Airbnb saw revenue rise 6.1% year on year to US$2.3 billion.
However, operating and net profit fell by 62.4% and 41.7% year-on-year, respectively, because of higher product development and sales and marketing expenses.
Despite this drop, the company churned out higher free cash flow at US$1.9 billion, a 7.5% year-on-year increase.
Gross booking value on its platform rose 7% year on year to US$24.5 billion while nights and experiences booked improved by 8% year on year to 143.1 million.
Back in May, Airbnb announced an overhaul of its app and launched its new Services offering along with an Experiences tour-booking product.
The revamped app provides 10 categories of in-home services, including home-cooked meals, spa treatments, and personal training.
The Experiences category includes a list of nearly 20,000 tours that are curated for quality and uniqueness.
These new services should open up new revenue streams for the platform and help it to grow its revenue and profits.
Accenture (NYSE: ACN)
Accenture is a professional services company that helps organisations to optimise their operations and create value for their stakeholders.
The company hires around 791,000 staff and serves clients in more than 120 countries.
For the first nine months of fiscal 2025 (9M FY2025) ending 31 May 2025, Accenture saw its revenue rise 7.4% year on year to US$52 billion.
Operating profit climbed 12.9% year on year to US$8.2 billion, with net profit increasing by 12.3% year on year to US$6.3 billion.
In light of the robust results, Accenture upped its quarterly dividend per share to US$1.48.
The company also churned out a healthy free cash flow of US$7.1 billion, 30% higher than a year ago.
Accenture expects full fiscal 2025 revenue growth to be in the region of between 6% to 7%.
Free cash flow guidance has been raised to between US$9 billion to US$9.7 billion.
Last month, the company acquired Maryville Consulting Group, a technology consultancy firm with capabilities in product-driven growth strategy and digital operations.
In the same month, Accenture also invested in YearOne, a company that helps organisations accelerate their software development through its software engineering intelligence platform.
Factset (NYSE: FDS)
Factset is a financial services data provider offering enterprise data and information solutions and serves more than 8,800 global clients.
For 9M FY2025, revenue increased by 5.1% year on year to US$1.7 billion, but operating profit dipped slightly by 0.4% year on year to US$571 million because of higher expenses.
Net profit slipped almost 1% year on year to US$443.4 million because of lower interest income.
Despite the lower profit, Factset raised its quarterly dividend by 5.8% year on year to US$1.10.
The business also churned out a positive free cash flow of US$439.3 million.
Factset saw its user count increasing by 6% year on year to 220,496, and boasted a high client retention rate of 91%.
For FY2025, Factset expects annual subscription value (ASV) to increase between US$100 million to US$130 million.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
