Monday.com (MNDY) ended the recent trading session at $79.03, demonstrating a -2.08% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.51%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
The project management software developer's shares have seen an increase of 9.99% over the last month, surpassing the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of Monday.com in its upcoming release. The company's earnings per share (EPS) are projected to be $1.14, reflecting a 4.59% increase from the same quarter last year. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.49 per share and a revenue of $1.47 billion, representing changes of +2.05% and +19.34%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Mondaycom. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 remained unchanged. At present, Monday.com boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Monday.com currently has a Forward P/E ratio of 18. This expresses a discount compared to the average Forward P/E of 20.31 of its industry.
Investors should also note that MNDY has a PEG ratio of 1.43 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.07 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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).