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Insight Enterprises (NSIT) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Insight Enterprises (NSIT) closed the most recent trading day at $68.43, moving -1.58% from the previous trading session. This change lagged the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.93%.

Prior to today's trading, shares of the information technology provider had lost 1.74% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.75% and the S&P 500's gain of 3.3% in that time.

NSIT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.61, up 21.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.37 billion, up 35.31% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for NSIT. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.23% lower. NSIT is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, NSIT is currently trading at a Forward P/E ratio of 11.19. For comparison, its industry has an average Forward P/E of 18.38, which means NSIT is trading at a discount to the group.

The Retail - Mail Order industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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