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7 Reasons Why Perficient Inc is a Good Stock to Add to Your Portfolio

29 Jan 7 Reasons Why Perficient Inc is a Good Stock to Add to Your Portfolio

Perficient, Inc. (NASDAQ: PRFT) is a Digital Consultancy Services and solutions provider for a plethora of industries such as Automotive, Energy and Utility Services, Healthcare, Life Sciences, Financial Services and Manufacturing to name a few. The Company has shown great resilience against the pandemic and is marching ahead to achieve its goal of becoming a leading digital consultancy firm. Here’s why we believe Perficient can add great value to your portfolio:

Digital Transformation
The advent of smartphones, the impact of the pandemic and increasing adoption of cloud storage solutions are compelling organizations to digitalize their services, to cater to new-age customers, who rely greatly on online platforms for their needs. According to a report by IDC, the worldwide spending on digital transformation products and services is likely to reach $2.3 trillion in 2023, growing at a CAGR of 17.1% from 2019 to 2023.

An increasing number of organizations are now focusing on their digital customer experience, and are using big data analytics, to generate actionable insights that will lead to better customer understanding, improved engagement and loyalty. However, increasing concerns about data security and privacy, network vulnerability and challenges with integrating legacy systems with new age systems may hamper the growth and adoption of digital platforms.

Digital transformation can be achieved through installation of on-site infrastructure or through SaaS based cloud services and have their own distinct advantages. The evolution of technology is also contributing to the rising popularity of digitization, with Artificial Intelligence, Machine learning, IoT and blockchain simplifying the complexities of Digital Transformation.

Differentiated Service Offering
Perficient provides comprehensive end-to-end digital solutions that allow companies to improve their customer interactions and achieve growth. The Company offers strategy and consulting solutions to create a vision for the future; helps align business goals to customer expectations and transform ideas into actionable outcomes, through innovation and product development. In addition, the Company designs platforms and tools to optimize systems and processes and improve productivity.

Image Source: Company

Digital platforms generate valuable information that can offer insights into customer preferences and behavior, but the sheer amount of data available can be overwhelming to process and make sense of. This is where perficient can step up and help make this information useful, by using advanced analytical tools and facilitate data-driven, informed decisions. Furthermore the Company also establishes scalable and reliable delivery models to supplement these digital investments.

Expanding Global Operations
The Company’s operations are spread over North America, Latin America, Europe, India and China and are a testimony to its aggressive expansion plans. The Company has an optimal mix of onshore and offsite operations, making it well-positioned to enjoy an advantage positions as compared to pure offshore companies.

Extensive Partnerships
Perficient’s enterprise partners are industry leaders such as IBM (NYSE: IBM), Microsoft (NASDAQ: MSFT), Oracle (NYSE: ORCL), Adobe (NASDAQ: ADBE), Mulesoft and Sitecore, while it enjoys strategic partnerships with Twilio (NYSE: TWLO), google (NYSE: GOOG), aws, Appian (NASDAQ: APPN), vmware (NYSE: VMW) and Microstrategy (NASDAQ: MSTR).

Image Source: Company

The Company has successfully assisted leading enterprises with their digital needs, notable amongst them being Caterpillar (NYSE: CAT), Ford (NYSE: F), Facebook (NASDAQ: FB), Toyota (NYSE: TM), Ascension (NZSE: ACE), Novartis (NYSE: NVS), Merck (NYSE: MRK), Nike (NYSE: NKE) and Ameritrade to name a few.

Key Acquisitions
In June 2020, the Company acquired psl for $33 million with Microsoft as its primary partner, to focus on its Latin American Market. In March 2020, Preficient acquired brainjocks in exchange for $13 million to focus on Web and Content Management in the regions of Atlanta and Serbia. In January 2020, the Company acquired MedTouch, a digital healthcare provider to focus serve Boston and Cedar Rapids, both these acquisitions were in partnership with SiteCore and will bring in clients such as Kinesso, Splunk, P&G, sage and essentia health into its fold.

Ahead of the Competition
The Company has managed to win projects while competing against industry giants such as a contract with a large healthcare payor to build a new platform for insurance services, a leading fashion design brand for data analytics, a global equipment manufacturer and another leading financial services company, beating industry giants like Cognizant (NASDAQ: CTSH), Capgemini (OTC: CGEMY), Slalom, Deloitte and Accenture (NYSE: ACN) among others.

Q4 and Full Year 2020 Outlook
As per the Company, its Q4, 2020 revenue is likely to be in the range of $156m – $161m an increase of 9 percent over $157.7 million in Q3, 2020. The full year revenue is expected to be in the range of $606m – $611 an increase of 8 percent.

Furthermore the Company expects to achieve a 20 percent growth in its EPS at an estimated $0.68 – $0.71, while the full year adjusted EPS will be around $2.42 – $2.45. In addition, its Q4, GAAP EPS is likely to be in the range of $0.36 – $0.39, while the Full-Year GAAP EPS is expected to be in the range of $1.02 – $1.05.

Perficient Inc (NASDAQ: PRFT)

Market Cap: $1.81B; Current Share Price: 55.05 USDChart
Data by YCharts

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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References

https://perficient.gcs-web.com/static-files/57f45096-5d92-4520-8d7e-b053db599fba

https://www.idc.com/getdoc.jsp?containerId=IDC_P32575

https://www.marketsandmarkets.com/Market-Reports/digital-transformation-market-43010479.html#:~:text=%5B274%20Pages%20Report%5D%20The%20global,16.5%25%20during%20the%20forecast%20period.

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