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Earnings Estimates Rising for Perion Network (PERI): Will It Gain?

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Zacks Equity Research
·2 min read
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Perion Network (PERI) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

Analysts' growing optimism on the earnings prospects of this digital media company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Perion Network, as there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The company is expected to earn $0.23 per share for the current quarter, which represents a year-over-year change of +4.55%.

Over the last 30 days, three estimates have moved higher for Perion Network compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 91.67%.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $0.28 per share represents a change of -42.86% from the year-ago number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Perion Network. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 68%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Perion Network currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Perion Network have attracted decent investments and pushed the stock 51.9% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.


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Zacks Investment Research