In the latest trading session, Monday.com (MNDY) closed at $146.91, marking a +2.9% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.62%. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.65%.
The project management software developer's shares have seen a decrease of 11.85% over the last month, not keeping up with the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.59%.
The investment community will be closely monitoring the performance of Monday.com in its forthcoming earnings report. The company is predicted to post an EPS of $0.91, indicating a 15.74% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $328.99 million, up 22.77% from the year-ago period.
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 0%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Mondaycom. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Monday.com is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Monday.com has a Forward P/E ratio of 28.78 right now. This indicates a premium in contrast to its industry's Forward P/E of 24.53.
It's also important to note that MNDY currently trades at a PEG ratio of 1.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.52.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
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.
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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