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Reasons Why You Should Hold Insperity Stock in Your Portfolio
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Key Takeaways
Insperity shares have gained 90.9% in six months, outpacing its industry and the S&P 500.
NSP's Q2 adjusted EPS rose 31% and adjusted EBITDA 13%, aided by pricing and cost controls.
Insperity ended Q2 with $700M in cash and no current debt, but health care costs remain a risk.
Insperity (NSP - Free Report) has delivered an impressive performance over the past six months. Its shares have gained 90.9%, outperforming the 57.3% rise of the Staffing Firms and the 17.8% increase of the Zacks S&P 500 composite.
NSP’s revenues are anticipated to increase more than 1.4% and 4.6% year over year in 2026 and 2027, respectively. Earnings are estimated to rise more than 100% in 2026 and 38.5% in 2027.
Image Source: Zacks Investment Research
Factors That Augur Well for NSP
Insperity’s margin recovery initiatives are positively impacting its performance, with adjusted EPS rising 31% year over year to $0.34 and adjusted EBITDA increasing 13% to $36 million in the second quarter of 2026. The company benefited from pricing and client-retention strategies, benefits plan changes and disciplined operating expense management, which helped reduce total operating expenses by 8%. Management expects the impact of these initiatives to build through the remainder of 2026, supporting its full-year outlook for adjusted EBITDA of $185-$225 million and adjusted EPS of $1.88-$2.43.
NSP is benefiting from the rapidly expanding global professional employer organization (PEO) market, driven by the growing number of small and medium-sized businesses and the increasing complexity of managing employee-related matters. Rising workers’ compensation insurance costs, workplace safety requirements, employee-related complaints and litigation and complex payroll, tax and employment regulations are encouraging businesses to seek specialized PEO solutions. As a leading provider of PEO services, Insperity is well positioned to capitalize on this growing demand through its expertise and comprehensive workforce management solutions.
The company has consistently demonstrated its commitment to rewarding shareholders through dividends and share buybacks. During 2023, 2024 and 2025, the company paid out dividends of $77 million, $89 million and $90 million, while repurchasing shares worth $131.5 million, $63 million and $19 million, respectively. During the first six months of 2026, NSP paid $46 million in dividends and repurchased approximately 172,000 shares for $4 million. These policies make the stock more attractive to investors.
Insperity held $700 million in cash and cash equivalents and marketable securities at the end of the second quarter of 2026, against zero current debt. This demonstrates that the company has sufficient liquidity to support growth. Moreover, NSP’s current ratio is at 1.11, almost in line with 1.12 from the preceding quarter. While it may not have surpassed the industry average of 1.31, it exceeded 1, which is a green flag for investors as it signals effective coverage of short-term obligations.
NSP: Key Risks to Watch
NSP is facing significant challenges from increased expenses, primarily due to uncertainty in the macro environment. Higher health care costs pushed benefits costs per covered employee up 5.2% year over year in the second quarter of 2026, while elevated health care costs have also contributed to greater workers’ compensation claim severity. These cost pressures could weigh on margins and profitability, particularly as the company expects a wider range of potential benefits-cost outcomes in the second half of 2026.
Some better-ranked stocks for investors’ consideration are Palantir Technologies (PLTR - Free Report) and Paycom Software (PAYC - Free Report) .
PLTR currently carries a Zacks Rank #2 (Buy). The company has an expected earnings growth rate of more than 100% and 40.9% for 2026 and 2027, respectively.
PLTR has an encouraging earnings surprise history, as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 15.79%.
PAYC sports a Zacks Rank #1. The company has an expected earnings growth rate of 28.8% and 15.8% for fiscal 2026 and 2027, respectively.
The company has an encouraging earnings surprise history, as it has topped the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 7.21%.
View the Zacks #1 Rank List
Image: Bigstock
Reasons Why You Should Hold Insperity Stock in Your Portfolio
Key Takeaways
Insperity (NSP - Free Report) has delivered an impressive performance over the past six months. Its shares have gained 90.9%, outperforming the 57.3% rise of the Staffing Firms and the 17.8% increase of the Zacks S&P 500 composite.
NSP’s revenues are anticipated to increase more than 1.4% and 4.6% year over year in 2026 and 2027, respectively. Earnings are estimated to rise more than 100% in 2026 and 38.5% in 2027.
Image Source: Zacks Investment Research
Factors That Augur Well for NSP
Insperity’s margin recovery initiatives are positively impacting its performance, with adjusted EPS rising 31% year over year to $0.34 and adjusted EBITDA increasing 13% to $36 million in the second quarter of 2026. The company benefited from pricing and client-retention strategies, benefits plan changes and disciplined operating expense management, which helped reduce total operating expenses by 8%. Management expects the impact of these initiatives to build through the remainder of 2026, supporting its full-year outlook for adjusted EBITDA of $185-$225 million and adjusted EPS of $1.88-$2.43.
NSP is benefiting from the rapidly expanding global professional employer organization (PEO) market, driven by the growing number of small and medium-sized businesses and the increasing complexity of managing employee-related matters. Rising workers’ compensation insurance costs, workplace safety requirements, employee-related complaints and litigation and complex payroll, tax and employment regulations are encouraging businesses to seek specialized PEO solutions. As a leading provider of PEO services, Insperity is well positioned to capitalize on this growing demand through its expertise and comprehensive workforce management solutions.
The company has consistently demonstrated its commitment to rewarding shareholders through dividends and share buybacks. During 2023, 2024 and 2025, the company paid out dividends of $77 million, $89 million and $90 million, while repurchasing shares worth $131.5 million, $63 million and $19 million, respectively. During the first six months of 2026, NSP paid $46 million in dividends and repurchased approximately 172,000 shares for $4 million. These policies make the stock more attractive to investors.
Insperity held $700 million in cash and cash equivalents and marketable securities at the end of the second quarter of 2026, against zero current debt. This demonstrates that the company has sufficient liquidity to support growth. Moreover, NSP’s current ratio is at 1.11, almost in line with 1.12 from the preceding quarter. While it may not have surpassed the industry average of 1.31, it exceeded 1, which is a green flag for investors as it signals effective coverage of short-term obligations.
NSP: Key Risks to Watch
NSP is facing significant challenges from increased expenses, primarily due to uncertainty in the macro environment. Higher health care costs pushed benefits costs per covered employee up 5.2% year over year in the second quarter of 2026, while elevated health care costs have also contributed to greater workers’ compensation claim severity. These cost pressures could weigh on margins and profitability, particularly as the company expects a wider range of potential benefits-cost outcomes in the second half of 2026.
Insperity’s Zacks Rank & Stocks to Consider
NSP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks for investors’ consideration are Palantir Technologies (PLTR - Free Report) and Paycom Software (PAYC - Free Report) .
PLTR currently carries a Zacks Rank #2 (Buy). The company has an expected earnings growth rate of more than 100% and 40.9% for 2026 and 2027, respectively.
PLTR has an encouraging earnings surprise history, as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 15.79%.
PAYC sports a Zacks Rank #1. The company has an expected earnings growth rate of 28.8% and 15.8% for fiscal 2026 and 2027, respectively.
The company has an encouraging earnings surprise history, as it has topped the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 7.21%.