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Is Insight Enterprises (NSIT) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Insight Enterprises (NSIT - Free Report) . NSIT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.51, which compares to its industry's average of 14.91. Over the past year, NSIT's Forward P/E has been as high as 12.16 and as low as 8.40, with a median of 11.16.

We should also highlight that NSIT has a P/B ratio of 1.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.31. Within the past 52 weeks, NSIT's P/B has been as high as 2.20 and as low as 1.43, with a median of 1.94.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NSIT has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.27.

Finally, investors will want to recognize that NSIT has a P/CF ratio of 9.15. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.80. Over the past 52 weeks, NSIT's P/CF has been as high as 12.55 and as low as 7.11, with a median of 9.85.

These are only a few of the key metrics included in Insight Enterprises's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NSIT looks like an impressive value stock at the moment.


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