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There are plenty of reasons to find a four-letter ticker to invest in nowadays. The move higher in the Nasdaq Composite has helped underpin a broad stock market rally, bouncing back from the bear market last year. One such stock is today’s Bull of the Day, which is in the Internet – Content industry and ranks in the Top 18% of our Zacks Industry Rank.

Today’s Bull of the Day is Zacks Rank #1 (Strong Buy) Perion Network ((PERI - Free Report) ). Perion Network Ltd. provides digital advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. It provides Wildfire, a content monetization platform; search monetization solutions, including website monetization, search mediation, and app monetization; and cross-channel digital advertising software as a service platform.

A deep dive into Perion's financials reveals promising trends across its revenue streams. Display Advertising revenues, which account for 59% of total revenues, leaped 23.6% year over year, reaching $123.8 million. Connected Television revenues, a subset of the Display Advertising revenues, saw an impressive 42% boost. Simultaneously, Search Advertising and other revenues showed an even more significant surge of 48.6% year over year, standing at $85.9 million. These figures show that Perion's diverse revenue channels are driving its consistent growth.

Image Source: Zacks Investment Research

The company's Traffic Acquisition Costs (TAC) may have increased by 30.8% to $122 million, but notably, as a percentage of revenues, TAC actually decreased from the previous year, indicating improved efficiency. Perion's operating profit stood at a remarkable $41.2 million, more than doubling from the $20.8 million in the year-ago quarter.

The reason for the favorable Zacks Rank is the recent upside earnings estimate revisions coming from analysts. Over the last 60 days, three analysts have increased estimates for the current year while two have done so for next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from $2.69 to $2.84 while next year’s number is up from $2.92 to $3.08.

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