Monday.com (MNDY) closed the most recent trading day at $67.09, moving -5.4% from the previous trading session. This move lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Prior to today's trading, shares of the project management software developer had lost 7.2% lagged the Computer and Technology sector's loss of 2.57% and the S&P 500's loss of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of Monday.com in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.14, reflecting a 4.59% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $354.95 million, indicating a 18.71% increase compared to the same quarter of the previous year.
MNDY's full-year Zacks Consensus Estimates are calling for earnings of $4.49 per share and revenue of $1.47 billion. These results would represent year-over-year changes of +2.05% and +19.34%, respectively.
It is also important to note the recent changes to analyst estimates for Mondaycom. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Monday.com is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Monday.com is at present trading with a Forward P/E ratio of 15.81. This valuation marks a discount compared to its industry average Forward P/E of 18.07.
One should further note that MNDY currently holds a PEG ratio of 1.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).