Are Investors Undervaluing Perion Network (PERI) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Perion Network (PERI) is a stock many investors are watching right now. PERI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.72, which compares to its industry's average of 23.69. Over the past 52 weeks, PERI's Forward P/E has been as high as 15.19 and as low as 9.31, with a median of 11.30.
PERI is also sporting a PEG ratio of 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PERI's PEG compares to its industry's average PEG of 1.28. Over the last 12 months, PERI's PEG has been as high as 0.61 and as low as 0.37, with a median of 0.45.
Another notable valuation metric for PERI is its P/B ratio of 2.62. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 7.36. Over the past year, PERI's P/B has been as high as 3.16 and as low as 1.55, with a median of 2.27.
Finally, our model also underscores that PERI has a P/CF ratio of 14.13. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 33.60. Over the past year, PERI's P/CF has been as high as 17.03 and as low as 10.07, with a median of 13.31.
Tencent Music Entertainment Group (TME) may be another strong Internet - Content stock to add to your shortlist. TME is a # 2 (Buy) stock with a Value grade of A.
Tencent Music Entertainment Group is currently trading with a Forward P/E ratio of 11.77 while its PEG ratio sits at 0.43. Both of the company's metrics compare favorably to its industry's average P/E of 23.69 and average PEG ratio of 1.28.
Over the past year, TME's P/E has been as high as 21.31, as low as 8.99, with a median of 13.45; its PEG ratio has been as high as 1.15, as low as 0.42, with a median of 0.45 during the same time period.
Additionally, Tencent Music Entertainment Group has a P/B ratio of 1.62 while its industry's price-to-book ratio sits at 7.36. For TME, this valuation metric has been as high as 2.13, as low as 0.90, with a median of 1.66 over the past year.
These are just a handful of the figures considered in Perion Network and Tencent Music Entertainment Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PERI and TME is an impressive value stock right now.
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Perion Network Ltd (PERI) : Free Stock Analysis Report
Tencent Music Entertainment Group Sponsored ADR (TME) : Free Stock Analysis Report
