Insight - Value

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Insight ( NSIT ) is a Zacks #1 Rank (Strong Buy) after posting four upside surprises and gets higher estimates for 2012. Its low multiples make it worth a look for value investors.

Company Description

Insight is a global direct marketer of brand name computers, hardware and software. The company markets to small-and-medium- sized businesses, through a combination of a strong outbound telemarketing sales force, electronic commerce, electronic marketing and direct mail catalogs. The company offers an extensive assortment of computer hardware and software. The company's sales force, aggressive marketing strategies and streamlined distribution, together with its advanced proprietary information system, have resulted in high customer loyalty and strong, profitable growth.

Impressive Streak of Earnings Surprises

It's not that often you see a company that has beaten the Zacks Consensus Estimate for 12 straight quarters. A little more than three years ago, the company met expectations and after that the beats have been programmed in like they were on speed dial.

Over the last four quarters, the company has posted an earnings surprise by an average of 16%. Two of those beats were more than 25% ahead of the Zacks Consensus Estimate

NSIT Recently Reported Earnings

On February 13, 2012 the company reported revenue of $1.36 billion slightly above estimates and up from the $1.33 billion reported in the year ago period. In addition, earnings per share came in at $0.63 up from $0.50 posted a year ago and $0.13 ahead of the Zacks Consensus Estimate. As a result, the stock moved higher by more than 18%.

Earnings Estimates Bumped Up

Following the most recent earnings report, analysts bumped up their earnings estimates for 2012. The Zacks Consensus Estimate for 2012 EPS moved from $2.04 in January 2012 to the current level of $2.27.

Valuations

NSIT has a very attractive valuation. Value investors will appreciate all the multiples that the company trades at, including at 9x forward PE multiple and a 1.5x price to book multiple. One metric that stands out even more is the 0.17x price to sales metric that shows the company trading a steep discount to the industry average of 0.74x.

The Chart

Three straight years of beats is impressive and a chart shows that it could have been more than four had it not been for an earnings meet. Value investors will like this name not only for the low multiple and attractive valuation, but for its consistency when it comes to earnings. NSIT is a Zacks #1 Rank (Strong Buy).

Insight - ticker NSIT> <P ALIGN=

Brian Bolan is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor service

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INSIGHT ENTRPRS ( NSIT ): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

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