Hedgeye CEO Keith McCullough is adding Insperity (NSP) to the long side of Investing Ideas. Below is a brief note.
Now that we're into Day 3 of a US stock market correction (that we proactively prepared for using our volatility signals)... we can add to names that have corrected.
One of those names is a Industrials analyst Jay Van Sciver idea that continues to work, Insperity (NSP). Here's a good excerpt from his recent Institutional Research on the name:
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NSP | It’s The Pricing Our take on NSP, TNET and PEOs in general is that the intensifying complexity of employment under CARES & other COVID-19 packages, the stresses created by the pandemic itself, and a potential new administration/state regulations (e.g. Prop 22) would generate a favorable demand and pricing environment. In the interim, falling healthcare utilization because of the pandemic would generate significant insurance profitability, allowing these companies to exceed (unreasonably low) consensus estimates. Like MP, we don't think NSP is a very well understood stock, yet... |
KM