Growing up, my family’s ritual was to sit together in front of our 32-inch color TV to watch our favorite shows after dinner.
As an adult in 2022, I watch shows and movies a different way.
I subscribe to digital streaming services, such as Netflix and Amazon Prime.
I also read my news on the internet, which might seem strange coming from a former newspaper guy.
But I’m not alone. Take a look:
You can see the way Americans consume information has shifted since 2011.
By 2023, we’ll spend nearly twice as much time watching and reading digitally than we do any other way.
And companies are taking note of that, reaching customers using shorter digital videos and website ads instead of TV commercials.
Today’s Power Stock excels in helping companies reach a digital audience: Perion Network Ltd. (Nasdaq: PERI).
Perion helps companies monetize their digital content (i.e., make money from a website or smartphone app).
They also help plan, design and track digital ad campaigns and website analytics.
Perion stock scores a “Strong Bullish” 96 out of 100 on our Stock Power Ratings system, and we expect it to beat the broader market by 3X in the next 12 months.
PERI Stock: Strong Fundamentals + Bullish Momentum
After a close look at PERI stock, here’s what I found:
- In the first quarter of 2022, Perion recorded display advertising revenue of $68.6 million — an 80% year-over-year increase!
- The company recently acquired video monetization platform Vidazoo, which led its massive 341% year-over-year growth in video and cable television revenue.
PERI partners with huge digital media players including HBO, Starbucks, Visa, Nike and McDonald’s.
Over the last 12 months, PERI has notched an earnings-per-share growth rate of 193.7% and a sales growth rate of 46% — both strong in a competitive advertising market.
PERI scores a “Strong Bullish” 95 on our growth metric.
This is also a strong quality stock. Its returns on investment are 13.4%. That’s solid, contrasted with its industry peers’ average of negative 14.1%.
From May to November 2021, PERI stock jumped 95% to reach a new 52-week high. You can see in the stock chart above that it pared its gains in recent months but remains in the green.
While the rest of the market tumbled in mid-May 2022, PERI showed resilience amid market panic.
The stock remains 25.8% higher than a year ago and is crushing the software sector, which is down 13.5% over the same time.
Perion Network Ltd. stock scores a 96 overall on our proprietary Stock Power Ratings system.
That means we’re “Strong Bullish” and expect it to beat the broader market by at least three times in the next 12 months.
The shift from traditional media to digital media means companies are changing how they reach customers. Perion Network has a proven system to help businesses do just that.
Stay Tuned: B2B Packager to Buy
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify!
Stay tuned for the next issue, where I’ll share all the details on a top business-to-business provider of packaging, publishing and hygiene products.
Matt Clark, CMSA®
Research Analyst, Money & Markets
P.S. Want to share your thoughts with us? Contact my team and me at Feedback@MoneyandMarkets.com.