In the latest close session, Monday.com (MNDY) was down 4.11% at $90.43. The stock trailed the S&P 500, which registered a daily loss of 1.09%. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
The project management software developer's shares have seen an increase of 4.44% over the last month, surpassing the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
The investment community will be closely monitoring the performance of Monday.com in its forthcoming earnings report. The company's upcoming EPS is projected at $1.43, signifying a 23.28% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $368.34 million, indicating a 16.25% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $5.58 per share and a revenue of $1.47 billion, demonstrating changes of +26.82% and +19.29%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications 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 shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.85% higher. At present, Monday.com boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Monday.com is presently being traded at a Forward P/E ratio of 16.89. This valuation marks a discount compared to its industry average Forward P/E of 21.23.
Also, we should mention that MNDY has a PEG ratio of 0.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.25 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% 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.
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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This article originally published on Zacks Investment Research (zacks.com).