In the latest close session, Monday.com (MNDY) was up +1.44% at $66.37. The stock outpaced the S&P 500's daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.36%.
The project management software developer's stock has dropped by 11.55% in the past month, falling short of the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
Investors will be eagerly watching for the performance of Monday.com in its upcoming earnings disclosure. In that report, analysts expect Monday.com to post earnings of $0.96 per share. This would mark a year-over-year decline of 12.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $338.9 million, up 20.07% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.15 per share and a revenue of $1.46 billion, demonstrating changes of -5.68% and +18.24%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Mondaycom. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, the Zacks Consensus EPS estimate remained stagnant. Right now, Monday.com possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Monday.com currently has a Forward P/E ratio of 15.75. This valuation marks a discount compared to its industry average Forward P/E of 18.83.
We can also see that MNDY currently has a PEG ratio of 0.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MNDY's industry had an average PEG ratio of 1.09 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).