Is NASDAQ:PERI on the Verge of a Major Breakout as a Strong Growth Stock?

Last update: Apr 1, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if PERION NETWORK LTD (NASDAQ:PERI) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted PERION NETWORK LTD showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Unpacking NASDAQ:PERI's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PERI has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 28.16% over the past year.
PERI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 49.88% yearly.
The Revenue has grown by 16.08% in the past year. This is quite good.
PERI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.07% yearly.
PERI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.44% yearly.
Based on estimates for the next years, PERI will show a quite strong growth in Revenue. The Revenue will grow by 14.07% on average per year.

Evaluating Health: NASDAQ:PERI

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:PERI has earned a 8 out of 10:

An Altman-Z score of 3.49 indicates that PERI is not in any danger for bankruptcy at the moment.
PERI has a Altman-Z score of 3.49. This is amongst the best in the industry. PERI outperforms 83.33% of its industry peers.
PERI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
PERI has a Current Ratio of 2.14. This indicates that PERI is financially healthy and has no problem in meeting its short term obligations.
PERI has a Current ratio of 2.14. This is in the better half of the industry: PERI outperforms 64.58% of its industry peers.
A Quick Ratio of 2.14 indicates that PERI has no problem at all paying its short term obligations.
PERI has a Quick ratio of 2.14. This is in the better half of the industry: PERI outperforms 66.67% of its industry peers.

Exploring NASDAQ:PERI's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:PERI, the assigned 8 is a significant indicator of profitability:

PERI has a better Return On Assets (10.90%) than 91.67% of its industry peers.
The Return On Equity of PERI (16.35%) is better than 86.46% of its industry peers.
The Return On Invested Capital of PERI (13.67%) is better than 93.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PERI is above the industry average of 7.38%.
The last Return On Invested Capital (13.67%) for PERI is above the 3 year average (12.04%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 15.80%, PERI belongs to the top of the industry, outperforming 88.54% of the companies in the same industry.
In the last couple of years the Profit Margin of PERI has grown nicely.
PERI's Operating Margin of 15.71% is amongst the best of the industry. PERI outperforms 84.38% of its industry peers.
In the last couple of years the Operating Margin of PERI has grown nicely.

How do we evaluate the setup for NASDAQ:PERI?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:PERI has a 8 as its setup rating:

PERI has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 23.36. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 22.43, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of PERI

Our latest full technical report of PERI contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.