StockStory flags Coherent and ePlus, passes on ICF International
StockStory identified Coherent and ePlus as preferred business services stocks while recommending investors avoid ICF International, citing divergent revenue trends and valuation metrics across the three companies. The analysis follows a 23.2% gain in the industry over the past six months, which outperformed the S&P 500 by 8.8 percentage points, though the report notes that cyclical reliance on corporate spending budgets requires caution.
StockStory identified Coherent and ePlus as preferred business services stocks while recommending investors avoid ICF International, citing divergent revenue trends and valuation metrics across the three companies. The analysis follows a 23.2% gain in the industry over the past six months, which outperformed the S&P 500 by 8.8 percentage points, though the report notes that cyclical reliance on corporate spending budgets requires caution.
ICF International, a NASDAQ-listed consulting firm with a market capitalization of $1.56 billion, was singled out for underperformance. The company reported annual sales declines of 4.3% over the past two years, while its backlog dropped by an average of 5.7% during the same period. Falling earnings per share over the last two years further contributed to the negative outlook. At a stock price of $86.82, ICF International trades at a forward P/E ratio of 11.1x.
In contrast, Coherent, listed on the NYSE with a market capitalization of $59.21 billion, was highlighted for exceptional growth. The company, which rebranded from II-VI Incorporated in 2022, posted 23% annual revenue growth over the last two years. Projected revenue growth of 49.4% over the next 12 months suggests accelerating demand. Coherent's earnings per share increased by 83.7% annually over the past two years, outperforming peers. The stock is priced at $305.40 per share, representing a forward P/E of 35.7x.
The third company analyzed was ePlus, a NASDAQ-listed technology provider with a market capitalization of $2.37 billion. Founded in 1990 as a financing company, ePlus has achieved 8.5% annual revenue growth over the last five years, surpassing the sector average. The company's free cash flow margin increased by 6.3 percentage points during that five-year period. ePlus is currently trading at $91.61 per share with a forward P/E of 16.8x.
The report attributes these recommendations to StockStory's AI platform, which identifies stocks combining elite fundamentals with near-term momentum. The platform previously flagged Nvidia and Tecnoglass in 2020; both stocks recorded significant gains between June 2020 and June 2025, with Nvidia up 1,460% and Tecnoglass up 1,552%. The analysis serves as part of StockStory's broader coverage of momentum-driven investment opportunities.