Absolutely, many business services stocks listed on the ASX are showing strong fundamentals in 2025. After the inflationary pressures of 2022–2023, the sector has adapted to tighter operating conditions and digital transformation. Stocks like Xero (ASX: XRO) and Wisetech Global (ASX: WTC) are benefiting from robust SaaS demand, while mid-cap companies focused on outsourcing and logistics have posted solid earnings growth. The recent rate cuts by the RBA have also improved sentiment.

I’ve been holding a position in SG Fleet Group (ASX: SGF) since late 2024 and it’s been outperforming. Their fleet leasing and management services are in high demand with corporate clients scaling up post-COVID. I believe business services are a safer bet this year compared to volatile mining or fintech plays.

It’s not all rosy. Some business services stocks are heavily dependent on interest rate movements and labor market dynamics. For instance, technology recruiters and consultancy firms have faced margin pressure due to high wages. So while the sector has upside, it’s important to dig into balance sheets and avoid overvalued names trading on future promises rather than proven growth.