In the latest trading session, Monday.com (MNDY) closed at $287.54, marking a +1.19% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.39%.
The project management software developer's stock has dropped by 1.57% in the past month, falling short of the Computer and Technology sector's gain of 9.6% and the S&P 500's gain of 5.88%.
Investors will be eagerly watching for the performance of Monday.com in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.84, reflecting a 10.64% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $293.15 million, indicating a 24.16% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.79 per share and a revenue of $1.22 billion, representing changes of +8.29% and +25.59%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Mondaycom. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Monday.com is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Monday.com is currently exchanging hands at a Forward P/E ratio of 75.03. This represents a premium compared to its industry average Forward P/E of 29.18.
Meanwhile, MNDY's PEG ratio is currently 29.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.18.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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