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

Zacks Equity Research

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, 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

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 holds a P/E ratio of 10.42, while its industry has an average P/E of 12.57. Over the past 52 weeks, NSIT's Forward P/E has been as high as 12.16 and as low as 8.40, with a median of 10.71.

Another notable valuation metric for NSIT is its P/B ratio of 2.11. 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 solid versus its industry's average P/B of 2.38. Within the past 52 weeks, NSIT's P/B has been as high as 2.15 and as low as 1.43, with a median of 1.88.

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 0.33.

Finally, investors should note that NSIT has a P/CF ratio of 11.35. 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 13.93. Within the past 12 months, NSIT's P/CF has been as high as 11.61 and as low as 7.11, with a median of 9.73.

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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