Insight Enterprises (NASDAQ: NSIT) is
a leading distributor of computer hardware and software, serving business, government and educational accounts in more than 170 countries. The company sells products from such major manufacturers as Hewlett-Packard (NYSE: HPQ) and Microsoft (NASDAQ: MSFT) through a direct sales force, telesales, catalogs and a Web site. Dell (NASDAQ: DELL) is a major competitor.
The company surprised the Street last week, with Q4 EPS of 48 cents and revenues of $1.28 billion. Analysts had been expecting 47 cents and $1.26 billion. Management also guided FY08 EPS to $1.80-$1.95, versus Street consensus of $1.79.
The stock
popped through 30-day and 50-day moving average resistance on the news and subsequently began forming a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with two "buys" and two "holds". Analysts see a 16% average annual growth rate, through the next five years. The stock's Price to Sales ratio (0.18), Price to Book ratio (1.14), Price to Cash Flow ratio (8.31) and EPS Growth rate (27.99%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $15.41 and $28.40. A stop-loss of $15.90 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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Reader Comments (Page 1 of 1)
2-13-2008 @ 2:32PM
Joyce L Williams said...
As we are engaged in a battle for recession and acquiesed interest rates, the govt economic stimulus plan has inadverdently shaped things up in a continuous tricyclic round-about fashion.
with last week's turmoil accredited, we are at what is known as a hedge bump, so to speak.
BRK.A is at a milestone at its peak, and those of
shareholder's that have prime interest are looking forward to an economic upswing that should laterally rebound in years to come.