Perficient (PRFT) Is Today's Strong And Under The Radar Stock

Trade-Ideas LLC identified Perficient ( PRFT) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Perficient as such a stock due to the following factors:

  • PRFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
  • PRFT has traded 4.134299999999999641886461176909506320953369140625 options contracts today.
  • PRFT is making at least a new 3-day high.
  • PRFT has a PE ratio of 3.
  • PRFT is mentioned 0.58 times per day on StockTwits.
  • PRFT has not yet been mentioned on StockTwits today.
  • PRFT is currently in the upper 20% of its 1-year range.
  • PRFT is in the upper 35% of its 20-day range.
  • PRFT is in the upper 45% of its 5-day range.
  • PRFT is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on PRFT:

Perficient, Inc. provides information technology and management consulting services in the United States. The company designs, builds, and delivers solutions using middleware software products developed by third-party vendors. PRFT has a PE ratio of 3. Currently there are 5 analysts that rate Perficient a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Perficient has been 171,000 shares per day over the past 30 days. Perficient has a market cap of $736.9 million and is part of the technology sector and computer software & services industry. Shares are up 23.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Perficient as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 18.3%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • PRFT's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, PRFT has a quick ratio of 2.29, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 17.8% when compared to the same quarter one year prior, going from $6.43 million to $7.57 million.
  • PERFICIENT INC has improved earnings per share by 15.8% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past two years indicate the company has sound management over its earnings and share float. We anticipate the company beginning to experience more growth in the coming year. During the past fiscal year, PERFICIENT INC reported lower earnings of $0.68 versus $0.69 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $0.68).
  • After a year of stock price fluctuations, the net result is that PRFT's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.

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