Technology

Perficient (PRFT) Outpaces Stock Market Gains: What You Should Know

Perficient (PRFT) closed at $27.48 in the latest trading session, marking a +0.77% move from the prior day. This change outpaced the S&P 500's 0.36% gain on the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.34%.

Heading into today, shares of the information technology consulting firm had lost 4.75% over the past month, lagging the Computer and Technology sector's gain of 1.96% and the S&P 500's gain of 0.64% in that time.

PRFT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.40, up 14.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $131.21 million, up 8.49% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.71 per share and revenue of $530.69 million, which would represent changes of +7.55% and +6.48%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for PRFT. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.78% higher. PRFT currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, PRFT is holding a Forward P/E ratio of 15.99. This represents a discount compared to its industry's average Forward P/E of 23.36.

Also, we should mention that PRFT has a PEG ratio of 1.56. 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. The Computer - Services industry currently had an average PEG ratio of 2.13 as of yesterday's close.

The Computer - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% 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.

To follow PRFT in the coming trading sessions, be sure to utilize Zacks.com.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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