Monday.com (MNDY) closed the most recent trading day at $84.10, moving +1.94% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.45%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 1.16%.
Coming into today, shares of the project management software developer had lost 1.5% in the past month. In that same time, the Computer and Technology sector gained 0.38%, while the S&P 500 gained 2.14%.
Market participants will be closely following the financial results of Monday.com in its upcoming release. The company's earnings per share (EPS) are projected to be $1.14, reflecting a 4.59% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $354.95 million, showing a 18.71% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.49 per share and revenue of $1.47 billion. These totals would mark changes of +2.05% and +19.34%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Mondaycom. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Monday.com possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Monday.com has a Forward P/E ratio of 18.4 right now. This denotes a discount relative to the industry average Forward P/E of 19.77.
We can also see that MNDY currently has a PEG ratio of 1.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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).