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Perion Network PERI shares ended the last trading session 6.9% higher at $8.68. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.5% loss over the past four weeks.
Perion Network is benefiting from rapid growth in its core Digital out-of-Home, CTV, and Retail Media advertising segments, driven by its AI-powered unified Perion One platform.
This digital media company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -79.6%. Revenues are expected to be $85.4 million, down 45.9% 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Perion Network belongs to the Zacks Internet - Content industry. Another stock from the same industry, Yelp YELP, closed the last trading session 1% lower at $33.55. Over the past month, YELP has returned -3.2%.
Yelp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.31. Compared to the company's year-ago EPS, this represents a change of +55%. Yelp currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).