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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Insight Enterprises (NSIT). NSIT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.26, which compares to its industry's average of 12.58. NSIT's Forward P/E has been as high as 12.16 and as low as 8.40, with a median of 10.69, all within the past year.
Another valuation metric that we should highlight is NSIT's P/B ratio of 2.06. 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 stock's P/B looks attractive against its industry's average P/B of 2.36. Over the past year, NSIT's P/B has been as high as 2.12 and as low as 1.43, with a median of 1.84.
Finally, we should also recognize that NSIT has a P/CF ratio of 11.10. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.81. Within the past 12 months, NSIT's P/CF has been as high as 11.43 and as low as 7.11, with a median of 9.65.
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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