Occasionally you come across a company where growth projections, healthy book numbers, technical charts, low cap size, strategic partnerships, recent positive news and the burgeoning industry it’s within combine to form a strong conclusion: this is a no-brainer. Perion (PERI) is one of these.
The digital advertising solutions company (including CTV) based out of Israel just revised upward its full year guidance only three weeks after their most recent earnings report, which is why the stock popped yesterday. Perion’s books are rock solid, and their Investor’s Business Daily SMR rating is an A with a relative strength number at 98. A glance at Barchart.com shows a 100% BUY rating among all their categories. Perion is also a small cap stock at $831M, meaning plenty of room to run. Check. Check. Check.
All small cap companies need strong partnerships, and Perion in November just re-upped their strategic partnership with Microsoft for four more years (nice to work with a $1.76T whale). Their excellent earnings report and recent upward revision for full year guidance indicates they are starting to shed their bashfulness and own the fact they’ll eventually become a major player within the field of programmatic advertising. And with a mere 29M shares in the float available to purchase, buying pressure should continue to build as Perion gets further discovered by institutional investors. The question is will they be acquired by a larger fish, like Magnite? Who knows, but in the meantime keep buying and enjoy the ride.
“A day without sunshine is like, you know, night.” -Steve Martin
Nice write!