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Insperity (NSP) Hits a 52-Week High, Can the Run Continue?
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Have you been paying attention to shares of Insperity, Inc. (NSP - Free Report) ? Shares have been on the move with the stock up 12.2% over the past month. NSP hit a new 52-week high of $72 in the previous session. Insperity has gained 25.2% since the start of the year compared to the 5.2% move for the Business Services sector and the 9% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a fantastic record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 12, 2018, Insperity reported EPS of $0.55 versus the Zacks Consensus Estimate of $0.46 while it beat the consensus revenue estimate by 1.52%.
For the current fiscal year, Insperity is expected to post earnings of $3.04 per share on $3.69 billion in revenues. This represents a 24.08% change in EPS on a 11.93% change in revenues. For the next fiscal year, the company is expected to earn $3.49 per share on $4.12 billion in revenues. This represents changes of 14.88% and 11.44%, respectively.
Valuation Metrics
Insperity may be at a 52-week high right now, but what might the future hold for NSP? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Insperity has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM score of B.
In terms of its value breakdown, the stock currently trades at 23.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 28.4X versus its peer group's average of 14.2X. Additionally, the stock has a PEG ratio of 1.32. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Insperity currently has a Zacks Rank #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Insperity meets the list of requirements. Thus, it seems as though NSP shares could still be poised for more gains ahead.
How Does Insperity Stack Up to the Competition?
Shares of Insperity have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including RANJY, KFY, and (NSP - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for NSP, even beyond its own solid fundamental situation.
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Insperity (NSP) Hits a 52-Week High, Can the Run Continue?
Have you been paying attention to shares of Insperity, Inc. (NSP - Free Report) ? Shares have been on the move with the stock up 12.2% over the past month. NSP hit a new 52-week high of $72 in the previous session. Insperity has gained 25.2% since the start of the year compared to the 5.2% move for the Business Services sector and the 9% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a fantastic record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 12, 2018, Insperity reported EPS of $0.55 versus the Zacks Consensus Estimate of $0.46 while it beat the consensus revenue estimate by 1.52%.
For the current fiscal year, Insperity is expected to post earnings of $3.04 per share on $3.69 billion in revenues. This represents a 24.08% change in EPS on a 11.93% change in revenues. For the next fiscal year, the company is expected to earn $3.49 per share on $4.12 billion in revenues. This represents changes of 14.88% and 11.44%, respectively.
Valuation Metrics
Insperity may be at a 52-week high right now, but what might the future hold for NSP? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Insperity has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM score of B.
In terms of its value breakdown, the stock currently trades at 23.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 28.4X versus its peer group's average of 14.2X. Additionally, the stock has a PEG ratio of 1.32. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Insperity, Inc. Price and Consensus
Insperity, Inc. Price and Consensus | Insperity, Inc. Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Insperity currently has a Zacks Rank #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Insperity meets the list of requirements. Thus, it seems as though NSP shares could still be poised for more gains ahead.
How Does Insperity Stack Up to the Competition?
Shares of Insperity have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including RANJY, KFY, and (NSP - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for NSP, even beyond its own solid fundamental situation.