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Are Investors Undervaluing Insight Enterprises (NSIT) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

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 an A grade for Value. The stock has a Forward P/E ratio of 10.79. This compares to its industry's average Forward P/E of 13.11. 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 10.59.

Another notable valuation metric for NSIT is its P/B ratio of 2.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.36. Within the past 52 weeks, NSIT's P/B has been as high as 2.07 and as low as 1.43, with a median of 1.85.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.32. This compares to its industry's average P/S of 0.34.

Finally, investors will want to recognize that NSIT has a P/CF ratio of 10.73. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.19. Within the past 12 months, NSIT's P/CF has been as high as 11.07 and as low as 7.11, with a median of 9.64.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Insight Enterprises is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NSIT feels like a great value stock at the moment.


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