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Perion Network (PERI) Gains As Market Dips: What You Should Know

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Perion Network (PERI - Free Report) closed at $40.26 in the latest trading session, marking a +0.95% move from the prior day. This change outpaced the S&P 500's 0.21% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.64%.

Heading into today, shares of the digital media company had gained 12.47% over the past month, outpacing the Computer and Technology sector's gain of 10.18% and the S&P 500's gain of 7.71% in that time.

Investors will be hoping for strength from Perion Network as it approaches its next earnings release, which is expected to be May 3, 2023. On that day, Perion Network is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 57.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $141.65 million, up 13.03% from the year-ago period.

PERI's full-year Zacks Consensus Estimates are calling for earnings of $2.69 per share and revenue of $730.13 million. These results would represent year-over-year changes of +8.91% and +14.04%, respectively.

It is also important to note the recent changes to analyst estimates for Perion Network. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Perion Network is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Perion Network currently has a Forward P/E ratio of 14.82. This represents a discount compared to its industry's average Forward P/E of 21.83.

Meanwhile, PERI's PEG ratio is currently 0.59. 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 Internet - Content was holding an average PEG ratio of 1.83 at yesterday's closing price.

The Internet - Content industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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