Are Investors Undervaluing Insight Enterprises (NSIT) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Insight Enterprises (NSIT) is a stock many investors are watching right now. NSIT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 16.34, which compares to its industry's average of 16.91. NSIT's Forward P/E has been as high as 16.34 and as low as 10.30, with a median of 13.73, all within the past year.
Investors should also recognize that NSIT has a P/B ratio of 3.68. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. NSIT's current P/B looks attractive when compared to its industry's average P/B of 4.41. NSIT's P/B has been as high as 3.68 and as low as 2.05, with a median of 2.95, over the past year.
Finally, our model also underscores that NSIT has a P/CF ratio of 20.57. 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 stock's P/CF looks attractive against its industry's average P/CF of 23. NSIT's P/CF has been as high as 20.57 and as low as 10.53, with a median of 15.82, all within the past year.
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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Insight Enterprises, Inc. (NSIT) : Free Stock Analysis Report
