In the latest close session, Monday.com (MNDY) was down 3.52% at $181.06. The stock fell short of the S&P 500, which registered a gain of 0.4% for the day. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.66%.
Shares of the project management software developer have depreciated by 4.06% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.27%, and the S&P 500's gain of 1.02%.
Analysts and investors alike will be keeping a close eye on the performance of Monday.com in its upcoming earnings disclosure. On that day, Monday.com is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 4.71%. Simultaneously, our latest consensus estimate expects the revenue to be $312.02 million, showing a 24.31% escalation compared to the year-ago quarter.
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 +26.17%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Mondaycom. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained unchanged. As of now, Monday.com holds a Zacks Rank of #2 (Buy).
Digging into valuation, Monday.com currently has a Forward P/E ratio of 47.22. This represents a premium compared to its industry average Forward P/E of 29.42.
It is also worth noting that MNDY currently has a PEG ratio of 1.71. 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. The average PEG ratio for the Internet - Software industry stood at 1.94 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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