In the latest close session, Monday.com (MNDY) was up +1.54% at $147.56. This move outpaced the S&P 500's daily loss of 0.74%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.76%.
Coming into today, shares of the project management software developer had lost 2.21% in the past month. In that same time, the Computer and Technology sector gained 0.14%, while the S&P 500 gained 0.79%.
The investment community will be closely monitoring the performance of Monday.com in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.91, marking a 15.74% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $328.99 million, indicating a 22.77% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.28 per share and revenue of $1.23 billion, indicating changes of +22.29% and +26.25%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Mondaycom. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Monday.com is currently a Zacks Rank #3 (Hold).
Looking at valuation, Monday.com is presently trading at a Forward P/E ratio of 33.98. This valuation marks a premium compared to its industry average Forward P/E of 28.86.
We can also see that MNDY currently has a PEG ratio of 1.23. 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 average PEG ratio for the Internet - Software industry stood at 1.78 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 51, placing it within the top 21% 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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