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Insight Enterprises, Inc. (NASDAQ:NSIT), which is in the electronic business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $58.8 at one point, and dropping to the lows of $50.97. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Insight Enterprises’s current trading price of $55.92 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Insight Enterprises’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Insight Enterprises worth?
Good news, investors! Insight Enterprises is still a bargain right now. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 11.68x is currently well-below the industry average of 17.95x, meaning that it is trading at a cheaper price relative to its peers. However, given that Insight Enterprises’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Insight Enterprises look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Though in the case of Insight Enterprises, it is expected to deliver a relatively unexciting earnings growth of 4.0%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Insight Enterprises, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since NSIT is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on NSIT for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NSIT. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Insight Enterprises. You can find everything you need to know about Insight Enterprises in the latest infographic research report. If you are no longer interested in Insight Enterprises, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.