We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Perion Network Ltd (PERI) Hit a 52 Week High, Can the Run Continue?
Read MoreHide Full Article
Have you been paying attention to shares of Perion Network (PERI - Free Report) ? Shares have been on the move with the stock up 6% over the past month. The stock hit a new 52-week high of $36.32 in the previous session. Perion Network has gained 41.3% since the start of the year compared to the 13.1% move for the Zacks Computer and Technology sector and the 22% return for the Zacks Internet - Content industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 8, 2023, Perion Network reported EPS of $0.9 versus consensus estimate of $0.7.
For the current fiscal year, Perion Network is expected to post earnings of $2.69 per share on $730.13 million in revenues. This represents an 8.91% change in EPS on a 14.04% change in revenues. For the next fiscal year, the company is expected to earn $2.91 per share on $821.48 million in revenues. This represents a year-over-year change of 8.36% and 12.51%, respectively.
Valuation Metrics
Perion Network may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Perion Network has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.5X. On a trailing cash flow basis, the stock currently trades at 13X versus its peer group's average of 14.6X. Additionally, the stock has a PEG ratio of 0.53. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Perion Network currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Perion Network fits the bill. Thus, it seems as though Perion Network shares could have a bit more room to run in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Perion Network Ltd (PERI) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Perion Network (PERI - Free Report) ? Shares have been on the move with the stock up 6% over the past month. The stock hit a new 52-week high of $36.32 in the previous session. Perion Network has gained 41.3% since the start of the year compared to the 13.1% move for the Zacks Computer and Technology sector and the 22% return for the Zacks Internet - Content industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 8, 2023, Perion Network reported EPS of $0.9 versus consensus estimate of $0.7.
For the current fiscal year, Perion Network is expected to post earnings of $2.69 per share on $730.13 million in revenues. This represents an 8.91% change in EPS on a 14.04% change in revenues. For the next fiscal year, the company is expected to earn $2.91 per share on $821.48 million in revenues. This represents a year-over-year change of 8.36% and 12.51%, respectively.
Valuation Metrics
Perion Network may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Perion Network has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.5X. On a trailing cash flow basis, the stock currently trades at 13X versus its peer group's average of 14.6X. Additionally, the stock has a PEG ratio of 0.53. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Perion Network currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Perion Network fits the bill. Thus, it seems as though Perion Network shares could have a bit more room to run in the near term.