Is Perion Network (PERI) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Perion Network (PERI). PERI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.28 right now. For comparison, its industry sports an average P/E of 26.60. Over the last 12 months, PERI's Forward P/E has been as high as 17.09 and as low as 5.71, with a median of 9.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PERI has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.44.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Perion Network is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PERI feels like a great value stock at the moment.
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