Most folks are looking at the numbers and wondering if the market is going to consolidate and go higher, or begin to falter and drop into a correctional phase. The charts are mixed and the analysts are split as players try to predict market direction. Protection on long positions seems to be the most favorable strategy as most investors believe the markets will be fine long-term. But, as always, there remains the question of near-term health, making wise stock selection more essential than ever. Technology is a sector that has struggled so far in 2013, as other areas of the market have clearly outperformed. Many of the investors that I speak with intend to load up on technology companies when the equity markets pull back a bit offering cheaper prices.
Perficient, Inc. (NASDAQ: PRFT) is an information technology consulting firm that assists large enterprise customers. Perficient is an up and coming company with a market cap of $382 million and nice sales margins. The company is set to serve as the evening event sponsor and showcase its expertise at the Microsoft (NASDAQ: MSFT) Lync Conference February 19-21st in San Diego, California. Perficient was named one of Microsoft’s partners to receive the premier support Lync Partner certification and is expected to be a key strategic partner over the next couple of years.
In this segment of the tech sector there are a number of small to mid-cap competitors such as; Sykes Enterprises (NASDAQ: SYKE) with a market cap of $682 million, ExlService Holdings, Inc. (NASDAQ: EXLS) which has a market cap of $948 million and Tele Tech Holdings, Inc. (NASDAQ: TTEC) with a market cap of $992 million. Larger competitors in the industry include; Accenture Plc (NYSE: ACN) with a market cap $51.09 billion, Cognizant Technology Solution Corp (NASDAQ: CTSH) which boasts a market cap of $22.96 billion and Computer Sciences Corporation (NYSE: CSC) whose market cap is $7.22 billion. The information technology segment of the tech sector is growing incrementally. Communications have become very complex as there is a multitude of information available in various formats. Many companies are looking to optimize their communications, putting PRFT in a good position.
The stock is currently trading at $12.00 per share and is flirting with its 6-month high of $12.36. The company has been relatively range bound, with tremendous support at $10.50 per share. Recently there has been an impressive buy signal emanating from the company’s chart, as the 50-day moving average has crossed over the 200-day moving average, forming the ideal “Golden Cross.”. The Golden Cross is the strongest bullish technical indicator when coupled with a triple bottom.
Perficient is innovative with sound management that is now focusing on social media. Michael Porter, principal for Perficient’s National Portal has said:”Social business is a powerful trend that cannot be ignored. Imagine if all workers were empowered with the information they needed to be successful – what kind of innovative solutions could be created, and what kind of relationships could be cultivated.” With the company’s goal to be a competitor in social media coupled with amazing numbers, PRFT may be a nice addition for your portfolio.