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Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

·2 min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Insperity, Inc. (NSP)

Insperity provides an array of human resources (HR) and business solutions designed to help improve business performance. Since its formation in 1986, the company has evolved from being solely a professional employer organization (“PEO”) to a comprehensive business performance solutions provider.

NSP boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Insperity, Inc. are trading at a forward earnings multiple of 20X, as well as a PEG Ratio of 1.3, a Price/Cash Flow ratio of 22.4X, and a Price/Sales ratio of 0.7X.

Many value investors pay close attention to a company's earnings as well. For NSP, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.37 to $4.75 per share for 2022. Per share NSP boasts an average earnings surprise of 0.5%.

NSP should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


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