February 16, 2011
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.