The most recent trading session ended with Monday.com (MNDY) standing at $276.30, reflecting a +0.63% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 0.55%.
Shares of the project management software developer witnessed a gain of 12.91% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.6% and the S&P 500's loss of 0.84%.
Investors will be eagerly watching for the performance of Monday.com in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 12, 2025. It is anticipated that the company will report an EPS of $0.70, marking a 14.75% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $275.66 million, up 27.09% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.32 per share and a revenue of $1.21 billion, demonstrating changes of -5.14% and +24.32%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Monday.com. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 7.69% higher within the past month. Monday.com is currently a Zacks Rank #3 (Hold).
In the context of valuation, Monday.com is at present trading with a Forward P/E ratio of 82.61. This signifies a premium in comparison to the average Forward P/E of 25.98 for its industry.
Meanwhile, MNDY's PEG ratio is currently 2.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.2.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 143, placing it within the bottom 43% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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