Insight Enterprises (NSIT) Coming Into Its Own
Insight Enterprises, Inc. (NASDAQ: NSIT) managed to resist the market-wide selling and took advantage of the semi-bullish environment this week. At this point in time, the would-be buyers need to get off the fence.
On the technical side, Insight Enterprises managed to push back above its 50-day moving average line in late January. Moreover, the stock tested that line - successfully - as support over the last three weeks... gaining 7.5% in the process. In comparison, the broad market is down 2% for the same timeframe. The relative strength alone should be compelling to bulls; the action at the moving averages says the time is right.
On the fundamental side, the strong chart makes sense.
Insight Enterprises, Inc. is a loser on a trailing-twelve month basis, but the company has been profitable in its last tree quarters. A terrible quarter four quarters ago is dragging down the whole year, but many investors who use full-year 'sort and scans' don't realize that once the company releases its next earnings report, that loss of $3.76 per share in the second quarter of 2007 will no longer be part of the trailing-twelve months; the TTM number should then be a nice $0.93 per share.
At a plausible EPS estimate of $1.04 for 2010, NSIT really is underestimated and undervalued at its current price.
