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Should Value Investors Buy Insight Enterprises (NSIT) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One company value investors might notice is Insight Enterprises (NSIT - Free Report) . NSIT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.79 right now. For comparison, its industry sports an average P/E of 14.10. NSIT's Forward P/E has been as high as 19.23 and as low as 11.25, with a median of 14.56, all within the past year.

Another notable valuation metric for NSIT is its P/B ratio of 2.43. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.33. Within the past 52 weeks, NSIT's P/B has been as high as 4.04 and as low as 2.30, with a median of 2.78.

Finally, investors will want to recognize that NSIT has a P/CF ratio of 15.42. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 28.09. Over the past 52 weeks, NSIT's P/CF has been as high as 21.60 and as low as 14.38, with a median of 16.17.

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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