When your information technology needs extend beyond off-the-shelf software, it's usually best to go with an experienced consultant. There is an Austin, Texas outfit that's well thought of that way. It works for some of the biggest corporations in America.
Perficient, Inc. (NASDAQ: PRFT) is an information technology consulting firm, with clients throughout the United States. Company services include software development, systems integration, consulting and support. Its specializes in solutions involving portals and collaboration, eCommerce, online customer relationship management, enterprise content management, business integration, mobile technology solutions and service-oriented architectures. Clients include Anheuser-Busch (NYSE: BUD), IBM (NYSE: IBM) and Wells Fargo (NYSE: WFC). Electronic Data Systems (NYSE: EDS) is a major competitor.
The firm pleased investors last week, when it raised its Q4 services and software revenue guidance from $56.3-$62.1 million to $61.2-62.7 million. Analysts had been expecting $59.97 million. The CEO noted that the strong revenues were bolstered by a reacceleration of organic growth. Northland Securities subsequently reiterated its "outperform" rating on the stock and declared a $25 price target.
The share price popped on the news and has since been consolidating the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with two "strong buys", four "buys" and one "hold". Analysts see a 26% growth rate, through the next year. The PRFT Price to Sales ratio (2.42), Price to Book ratio (3.00), Price to Free Cash Flow ratio (29.63), Sales Growth rate (19.86%) and EPS Growth rate (61.54%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 77% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $14.55 and $25.19. A stop-loss of $14.10 looks good here. Note that the firm is next expected to report quarterly results in late-February.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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