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    Investors Still Aren't Entirely Convinced By Insperity, Inc.'s (NYSE:NSP) Revenues Despite 28% Price Jump

    Simply Wall St·01/09/2026 10:00:26
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    Those holding Insperity, Inc. (NYSE:NSP) shares would be relieved that the share price has rebounded 28% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 42% in the last twelve months.

    Although its price has surged higher, Insperity may still be sending bullish signals at the moment with its price-to-sales (or "P/S") ratio of 0.2x, since almost half of all companies in the Professional Services industry in the United States have P/S ratios greater than 1.3x and even P/S higher than 4x are not unusual. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.

    We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

    See our latest analysis for Insperity

    ps-multiple-vs-industry
    NYSE:NSP Price to Sales Ratio vs Industry January 9th 2026

    What Does Insperity's Recent Performance Look Like?

    Insperity could be doing better as it's been growing revenue less than most other companies lately. Perhaps the market is expecting the current trend of poor revenue growth to continue, which has kept the P/S suppressed. If you still like the company, you'd be hoping revenue doesn't get any worse and that you could pick up some stock while it's out of favour.

    Want the full picture on analyst estimates for the company? Then our free report on Insperity will help you uncover what's on the horizon.

    What Are Revenue Growth Metrics Telling Us About The Low P/S?

    Insperity's P/S ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the industry.

    Taking a look back first, we see that the company managed to grow revenues by a handy 3.2% last year. The solid recent performance means it was also able to grow revenue by 18% in total over the last three years. So we can start by confirming that the company has actually done a good job of growing revenue over that time.

    Turning to the outlook, the next year should generate growth of 5.8% as estimated by the five analysts watching the company. Meanwhile, the rest of the industry is forecast to expand by 6.2%, which is not materially different.

    In light of this, it's peculiar that Insperity's P/S sits below the majority of other companies. It may be that most investors are not convinced the company can achieve future growth expectations.

    The Key Takeaway

    Despite Insperity's share price climbing recently, its P/S still lags most other companies. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.

    Our examination of Insperity's revealed that its P/S remains low despite analyst forecasts of revenue growth matching the wider industry. The low P/S could be an indication that the revenue growth estimates are being questioned by the market. At least the risk of a price drop looks to be subdued, but investors seem to think future revenue could see some volatility.

    It is also worth noting that we have found 2 warning signs for Insperity (1 makes us a bit uncomfortable!) that you need to take into consideration.

    If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).