Insight Enterprises Shares Popped Again: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Insight Enterprises (Nasdaq: NSIT  ) rallied more than 10% for the second consecutive day thanks partly to a broad market rally and yesterday's blowout earnings report.

So what: Insight provides technology infrastructure to businesses, including professional services for organizations not large enough to contract with top outsourcers IBM and Infosys. It's good business: Revenue improved 16% last year. Normalized profit more than doubled over the same period.

Now what: Valuation may be driving the rally. Insight trades for a fraction of the long-term earnings growth analysts expect, resulting in a 0.59 PEG ratio as of this writing. If they're right, the stock may pop several times more before 2011 is over.

Interested in more info on Insight Enterprises? Add it to your watchlist. You can also try any of our Foolish newsletter services free for 30 days.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He owned shares of IBM at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool owns shares of IBM and is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.


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