In the latest close session, Monday.com (MNDY) was down 2.76% at $283.74. The stock's performance was behind the S&P 500's daily gain of 0.14%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.38%.
Prior to today's trading, shares of the project management software developer had gained 4.04% lagged the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35%.
The upcoming earnings release of Monday.com will be of great interest to investors. The company is forecasted to report an EPS of $0.84, showcasing a 10.64% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $293.15 million, showing a 24.16% escalation compared to the year-ago quarter.
MNDY's full-year Zacks Consensus Estimates are calling for earnings of $3.79 per share and revenue of $1.22 billion. These results would represent year-over-year changes of +8.29% and +25.59%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Mondaycom. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Monday.com is carrying a Zacks Rank of #3 (Hold).
Investors should also note Monday.com's current valuation metrics, including its Forward P/E ratio of 77.05. For comparison, its industry has an average Forward P/E of 29.16, which means Monday.com is trading at a premium to the group.
Also, we should mention that MNDY has a PEG ratio of 30.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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monday.com Ltd. (MNDY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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