In the latest close session, Monday.com (MNDY) was down 2.2% at $75.56. The stock's performance was behind the S&P 500's daily loss of 0.57%. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw a decrease of 1.15%.
Prior to today's trading, shares of the project management software developer had lost 1% lagged the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 2.14%.
The upcoming earnings release of Monday.com will be of great interest to investors. The company is expected to report EPS of $1.14, up 4.59% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $354.95 million, showing a 18.71% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.49 per share and a revenue of $1.47 billion, demonstrating changes of +2.05% and +19.34%, respectively, from the preceding year.
Any recent changes to analyst estimates for Monday.com should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Monday.com is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Monday.com is currently trading at a Forward P/E ratio of 17.23. This indicates a discount in contrast to its industry's Forward P/E of 18.65.
We can also see that MNDY currently has a PEG ratio of 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.05.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 39% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).