Why Perion Network (PERI) Dipped More Than Broader Market Today
The most recent trading session ended with Perion Network (PERI) standing at $28.22, reflecting a -1.6% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.56%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.59%.
Prior to today's trading, shares of the digital media company had lost 6.82% over the past month. This has lagged the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 1.2% in that time.
Investors will be eagerly watching for the performance of Perion Network in its upcoming earnings disclosure. The company is expected to report EPS of $0.97, up 7.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $233.11 million, up 11.18% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Perion Network. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Perion Network holds a Zacks Rank of #3 (Hold).
In terms of valuation, Perion Network is currently trading at a Forward P/E ratio of 8.69. This signifies a discount in comparison to the average Forward P/E of 15.14 for its industry.
We can additionally observe that PERI currently boasts a PEG ratio of 0.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Content industry held an average PEG ratio of 1.04.
The Internet - Content industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 203, finds itself in the bottom 20% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Perion Network Ltd (PERI) : Free Stock Analysis Report
