Monday.com (MNDY) closed at $82.47 in the latest trading session, marking a -1.41% move from the prior day. This change lagged the S&P 500's daily gain of 0.42%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.
The project management software developer's stock has climbed by 5.11% in the past month, exceeding the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 2.2%.
The investment community will be closely monitoring the performance of Monday.com in its forthcoming earnings report. The company is expected to report EPS of $1.14, up 4.59% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $354.95 million, indicating a 18.71% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.49 per share and a revenue of $1.47 billion, indicating changes of +2.05% and +19.34%, respectively, from the former 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, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Monday.com is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Monday.com has a Forward P/E ratio of 18.65 right now. This valuation marks a discount compared to its industry average Forward P/E of 19.73.
Also, we should mention that MNDY has a PEG ratio of 1.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MNDY's industry had an average PEG ratio of 1.06 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 38% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).