While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One stock to keep an eye on is Insight Enterprises (NSIT). NSIT is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.48, while its industry has an average P/E of 15.13. Over the past 52 weeks, NSIT's Forward P/E has been as high as 19.54 and as low as 12.59, with a median of 15.22.
Another valuation metric that we should highlight is NSIT's P/B ratio of 2.8. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.57. Within the past 52 weeks, NSIT's P/B has been as high as 4.04 and as low as 2.57, with a median of 2.88.
Finally, our model also underscores that NSIT has a P/CF ratio of 16.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NSIT's current P/CF looks attractive when compared to its industry's average P/CF of 23.44. NSIT's P/CF has been as high as 22.27 and as low as 14.38, with a median of 16.42, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Insight Enterprises is likely undervalued currently. And when considering the strength of its earnings outlook, NSIT sticks out as one of the market's strongest value stocks.
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Insight Enterprises, Inc. (NSIT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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