In the latest close session, Monday.com (MNDY) was down 2.47% at $76.75. This move lagged the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
Shares of the project management software developer have appreciated by 10.01% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.32%, and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Monday.com in its forthcoming earnings report. On that day, Monday.com is projected to report earnings of $1.14 per share, which would represent year-over-year growth of 4.59%. 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.
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.
Any recent changes to analyst estimates for Monday.com should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Monday.com holds a Zacks Rank of #3 (Hold).
Looking at valuation, Monday.com is presently trading at a Forward P/E ratio of 17.55. For comparison, its industry has an average Forward P/E of 20.12, which means Monday.com is trading at a discount to the group.
One should further note that MNDY currently holds a PEG ratio of 1.39. 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. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons 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.
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).