In the latest trading session, Monday.com (MNDY) closed at $184.19, marking a +2.92% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day.
The project management software developer's shares have seen a decrease of 7.58% over the last month, not keeping up with the Computer and Technology sector's gain of 6.37% and the S&P 500's gain of 3.68%.
The investment community will be paying close attention to the earnings performance of Monday.com in its upcoming release. The company is expected to report EPS of $0.89, up 4.71% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $312.06 million, indicating a 24.33% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.97 per share and revenue of $1.23 billion, indicating changes of +13.43% and +26.09%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Monday.com should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Monday.com is currently a Zacks Rank #5 (Strong Sell).
From a valuation perspective, Monday.com is currently exchanging hands at a Forward P/E ratio of 45.03. This signifies a premium in comparison to the average Forward P/E of 29.68 for its industry.
It is also worth noting that MNDY currently has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.22 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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