Are Investors Undervaluing Perion Network (PERI) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Perion Network (PERI) is a stock many investors are watching right now. PERI is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.7, which compares to its industry's average of 18.13. Over the past 52 weeks, PERI's Forward P/E has been as high as 11.19 and as low as 6.25, with a median of 8.32.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PERI has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.06.

Finally, we should also recognize that PERI has a P/CF ratio of 46.69. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 82.81. Over the past year, PERI's P/CF has been as high as 77.47 and as low as 4.21, with a median of 15.99.

These are only a few of the key metrics included in Perion Network's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PERI looks like an impressive value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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