Is NSP a good stock to buy?
We came across a bullish thesis on Insperity, Inc. on Iggy on Investing Newsletter’s Substack by Iggy on Investing
In this article, we will summarize the bulls’ thesis on NSP. Insperity, Inc.’s share was trading at $31.68 as of May 26th. NSP’s trailing and forward P/E were 70.12 and 15.85 respectively according to Yahoo Finance.
Insperity, Inc. (NSP) operates as a Professional Employer Organization (PEO) that co-employs workers for small and mid-sized businesses, providing full-stack HR services including payroll, compliance, benefits administration, workers’ compensation, and access to large-group health insurance. The business aggregates employees across hundreds of SMB clients, enabling cost advantages in health insurance that typically reduce premiums by 20–40%, a structural benefit that software alone cannot replicate. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential High switching costs, driven by payroll, tax, and benefits integration across states, result in 83–85% retention, with most attrition driven by business failure or M&A rather than competitive loss. The PEO industry is structurally attractive, having grown at a 7.6% CAGR from 2008 to 2020, while penetration remains low at roughly 15% in the 10–99 employee segment, supporting continued above-GDP growth.