I'm with you here on the IT services sector. Whilst it can be considered a discretionary spend for many companies, the efficiency and competitive advantage gained from strong IT infrastructure makes it a value adding service.
The reality is, in an industry like this it is somewhat difficult for providers to differentiate as the expertise they hold is in their people. That leaves many many of the companies on the list you attached quite evenly poised when it comes to their core offering of IT projects. In that regard, I think the best longer run strategy is to target the value stocks with strong balance sheets.
The PE's of the above stocks list gives a bit of insight into value:
DWS - 12
SMS - 26
DTL - 17
MLB - 26
CGL - 29
RXP - 9
EPX - 19
RXP clearly the stand out, great value at around 75c.
Plus with reported earnings growth of 13-14% this year it feels even better!
I'm accumulating whilst the stock is around the $0.70 mark as feels its doing everything right and should be trading at well over $1.00... a takeover price of anything less than this would be underpaying.
RXP Price at posting:
75.0¢ Sentiment: Buy Disclosure: Held
