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Strength Seen in Perion Network (PERI): Can Its 15.9% Jump Turn into More Strength?

Zacks Equity Research
·2-min read

Perion Network PERI shares ended the last trading session 15.9% higher at $26.51. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.5% gain over the past four weeks.

Perion Network shares soared after the company announced upbeat preliminary results for the first quarter of 2022. The company expects revenues of $125 million up 39% year over year and Adjusted EBITDA of $22 million up a whopping 150% from the year ago period.

The company is also expected to have reaped positive results from the acquisition of Vidazoo, a video management platform in the first quarter of 2022.

This digital media company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $119.43 million, up 33% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

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For Perion Network, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PERI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Perion Network is a member of the Zacks Internet - Content industry. One other stock in the same industry, Weibo Corporation WB, finished the last trading session 4.8% higher at $26.85. WB has returned -0.6% over the past month.

Weibo Corporation's consensus EPS estimate for the upcoming report has changed +9.8% over the past month to $0.50. Compared to the company's year-ago EPS, this represents a change of -12.3%. Weibo Corporation currently boasts a Zacks Rank of #5 (Strong Sell).


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Zacks Investment Research