Monday.com (MNDY) closed at $195.60 in the latest trading session, marking a +1.09% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.13%. On the other hand, the Dow registered a loss of 0.27%, and the technology-centric Nasdaq decreased by 0.07%.
Shares of the project management software developer witnessed a gain of 8.09% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.17%, and the S&P 500's gain of 2.71%.
The upcoming earnings release of Monday.com will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.89, reflecting a 4.71% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $312.06 million, indicating a 24.33% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.97 per share and revenue of $1.23 billion, which would represent changes of +13.43% and +26.09%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Mondaycom. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Monday.com possesses a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Monday.com is presently trading at a Forward P/E ratio of 48.68. This indicates a premium in contrast to its industry's Forward P/E of 31.79.
Meanwhile, MNDY's PEG ratio is currently 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.26.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 32% of all 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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