Monday.com (MNDY) closed the most recent trading day at $187.67, moving +1.09% from the previous trading session. This change outpaced the S&P 500's 0.16% loss on the day. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq lost 0.76%.
The stock of project management software developer has fallen by 4.05% in the past month, lagging the Computer and Technology sector's gain of 3.34% and the S&P 500's gain of 1.14%.
Analysts and investors alike will be keeping a close eye on the performance of Monday.com in its upcoming earnings disclosure. In that report, analysts expect Monday.com to post earnings of $0.89 per share. This would mark year-over-year growth of 4.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $312.02 million, up 24.31% from the year-ago period.
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 +26.17%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Mondaycom. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Monday.com is currently a Zacks Rank #2 (Buy).
Investors should also note Monday.com's current valuation metrics, including its Forward P/E ratio of 46.71. This signifies a premium in comparison to the average Forward P/E of 28.74 for its industry.
Investors should also note that MNDY has a PEG ratio of 1.69 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.99 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 24% 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.
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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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