Perion Network (PERI) shares rallied 7.6% in the last trading session to close at $27. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.2% loss over the past four weeks.
The recent surge in Perion’s share price reflects investors bullish sentiment after the company released its preliminary results for the fourth quarter 2022. Perion reported its fourth quarter 2022 revenues is expected to grow 30% year over year to $205 million and the Adjusted EBITDA growth of 60% year over year.
This digital media company is expected to post quarterly earnings of $0.65 per share in its upcoming report, which represents a year-over-year change of +47.7%. Revenues are expected to be $201.65 million, up 27.6% 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.
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 #1 (Strong 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, Airbnb, Inc. (ABNB), finished the last trading session 4.5% higher at $88.72. ABNB has returned -8.8% over the past month.
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Perion Network Ltd (PERI) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
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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.
