Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Insight Enterprises (NSIT). NSIT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for NSIT is its P/B ratio of 1.80. Investors use the P/B ratio to look at a stock's market value versus 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 2.35. Over the past 12 months, NSIT's P/B has been as high as 2.32 and as low as 0.99, with a median of 1.66.
Finally, investors will want to recognize that NSIT has a P/CF ratio of 9.87. 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 11.93. NSIT's P/CF has been as high as 12.63 and as low as 5.67, with a median of 9.20, 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Insight Enterprises, Inc. (NSIT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research