Monday.com (MNDY) closed at $201.57 in the latest trading session, marking a -2.43% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.48%.
Heading into today, shares of the project management software developer had gained 7.04% over the past month, lagging the Computer and Technology sector's gain of 7.4% and outpacing the S&P 500's gain of 2.87%.
Market participants will be closely following the financial results of Monday.com in its upcoming release. The company's upcoming EPS is projected at $0.89, signifying a 4.71% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $312.06 million, reflecting a 24.33% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.97 per share and revenue of $1.23 billion. These totals would mark changes of +13.43% and +26.09%, respectively, from last year.
Any recent changes to analyst estimates for Monday.com should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Monday.com possesses a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Monday.com is currently exchanging hands at a Forward P/E ratio of 51.98. This expresses a premium compared to the average Forward P/E of 29.71 of its industry.
It's also important to note that MNDY currently trades at a PEG ratio of 1.88. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 2.27 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MNDY in the coming trading sessions, be sure to utilize 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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