Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- Perion Network (Nasdaq: PERI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- PERI's very impressive revenue growth greatly exceeded the industry average of 45.9%. Since the same quarter one year prior, revenues leaped by 92.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although PERI's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.28, which illustrates the ability to avoid short-term cash problems.
- This stock has managed to rise its share value by 43.65% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PERI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 8365.0% when compared to the same quarter one year prior, rising from $0.02 million to $1.69 million.
-- Written by a member of TheStreet Ratings Staff