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Should Value Investors Buy Insight Enterprises (NSIT) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Insight Enterprises (NSIT - Free Report) . NSIT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.85. This compares to its industry's average Forward P/E of 12.56. 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 10.61.
Investors should also recognize that NSIT has a P/B ratio of 1.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.25. NSIT's P/B has been as high as 2.07 and as low as 1.43, with a median of 1.84, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NSIT has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.34.
Finally, our model also underscores that NSIT has a P/CF ratio of 9.78. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.57. Over the past 52 weeks, NSIT's P/CF has been as high as 11.10 and as low as 7.11, with a median of 9.64.
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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Should Value Investors Buy Insight Enterprises (NSIT) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Insight Enterprises (NSIT - Free Report) . NSIT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.85. This compares to its industry's average Forward P/E of 12.56. 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 10.61.
Investors should also recognize that NSIT has a P/B ratio of 1.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.25. NSIT's P/B has been as high as 2.07 and as low as 1.43, with a median of 1.84, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NSIT has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.34.
Finally, our model also underscores that NSIT has a P/CF ratio of 9.78. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.57. Over the past 52 weeks, NSIT's P/CF has been as high as 11.10 and as low as 7.11, with a median of 9.64.
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.