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INSIGHT ENTERPRISES, INC. Receives Positive Ratings from Gurus

A recent report highlights Insight Enterprises, Inc. achieving a strong rating through Warren Buffett's Patient Investor model. The stock shows positive fundamentals but sees room for improvement in expected returns.

Date: 
AI Rating:   6

The report indicates that INSIGHT ENTERPRISES, INC. (NSIT) rates highly according to the Patient Investor model based on Warren Buffett’s strategy, achieving a score of 54%. This score primarily reflects the company's earnings predictability, debt service capability, return on equity, free cash flow status, and proper use of retained earnings.

Specifically, Return on Equity (ROE) is highlighted as a strong point, implying that the company is effectively utilizing shareholders' equity to generate profits, which could positively influence investor sentiment and perceptions of profitability moving forward.

Moreover, Free Cash Flow (FCF) passing the criteria is another positive signal. A strong FCF indicates that the company is generating ample cash from operations, allowing it to invest in growth opportunities, reduce debt, or return capital to shareholders.

However, the report does point out some weaknesses, such as the Return on Total Capital where it fails to meet the expected benchmarks, indicating potential inefficiencies in capital utilization that may concern some investors.

The Expected Return is noted as a failure, signaling that there might be uncertainty surrounding future performance. This could lead some investors to approach the stock cautiously despite its current strengths.

Overall, while the favorable ratings in earnings predictability, debt service, ROE, FCF, and retained earnings are substantial positives, the failure in expected returns and return on total capital presents a mixed outlook for potential investors.

Stocks:  NSIT