Perficient, Inc. PRFT recently announced that it has partnered with St. Louis Blues franchise, the 2019 Stanley Cup Champion. The deal is likely to help the company gain a number of marketing and corporate engagement benefits.
Last week, the company also announced that it has expanded its three global delivery center (GDC) locations in India. By growing its foothold at Chennai, Nagpur and Bangalore GDC offices, Perficient’s ability to deploy cutting-edge solutions for fulfilling the digital transformation needs of its clients is likely to get a boost.
Notably, through its global and domestic delivery centers, the company has been able to help ramp up mammoth, complex projects and save costs of various enterprises in the key industries that it has partnered with.
Shares of Perficient have returned 70.3% so far this year, significantly outperforming its industry’s 21.8% rally.
What’s Aiding Perficient?
Perficient’s leadership in the flourishing digital transformation market is its key growth driver. The company is benefiting from the growing adoption of cloud, big data and analytics, which is driving demand for its services. Investments in expanding its portfolio around high-growth areas like cloud and digital is a key catalyst.
Moreover, the company’s focus on gaining partners is a tailwind. Notably, partnerships with leading software vendors, namely International Business Machines IBM, Microsoft MSFT, Adobe ADBE, Oracle and salesforce are helping the company win customers.
In the last reported quarter, it won 62 large new deals with bookings worth more than $500,000. Growth across healthcare, financial services, retail and consumer goods plus automotive and manufacturing verticals is an upside.
On the last earnings call, management mentioned that the non-profit healthcare system that the company partnered with in the beginning of this year backed its speed, efficiency and quality assurance as a key differentiator in comparison to the earlier vendors.
The company also partnered with a leading fintech entity to build a wealth management platform for its clients. Perficient also clinched a contract with a $60-million worth multi-line health insurer for enhancing its corporate performance management.
Notably, IDC expects spending on technologies and services that enable digital transformation of business practices, products and organizations to reach $1.97 trillion in 2022.
We therefore believe that the company’s initiatives in this regard will prove to be very beneficial to its top-line growth going forward.
Perficient currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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