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Perficient (PRFT) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Perficient (PRFT) closed the most recent trading day at $39.20, moving -0.46% from the previous trading session. This change lagged the S&P 500's 0.3% loss on the day. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.14%.

Prior to today's trading, shares of the information technology consulting firm had gained 7.65% over the past month. This has outpaced the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 2.46% in that time.

Investors will be hoping for strength from PRFT as it approaches its next earnings release, which is expected to be November 7, 2019. The company is expected to report EPS of $0.52, up 26.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $143.29 million, up 15.62% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.01 per share and revenue of $563.75 million, which would represent changes of +26.42% and +13.12%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PRFT. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PRFT currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, PRFT is holding a Forward P/E ratio of 19.59. This represents a discount compared to its industry's average Forward P/E of 19.79.

We can also see that PRFT currently has a PEG ratio of 1.82. 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. The Computer - Services was holding an average PEG ratio of 1.86 at yesterday's closing price.

The Computer - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PRFT in the coming trading sessions, be sure to utilize Zacks.com.

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