Zacks Equity Research
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In the latest trading session, Monday.com (MNDY) closed at $287.54, marking a +1.19% move from the previous day. The stock’s change was more than the S&P 500’s daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.39%.
The project management software developer’s stock has dropped by 1.57% in the past month, falling short of the Computer and Technology sector’s gain of 9.6% and the S&P 500’s gain of 5.88%.
Investors will be eagerly watching for the performance of Monday.com in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $0.84, reflecting a 10.64% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $293.15 million, indicating a 24.16% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.79 per share and a revenue of $1.22 billion, representing changes of +8.29% and +25.59%, respectively, from the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Mondaycom. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% 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).
From a valuation perspective, Monday.com is currently exchanging hands at a Forward P/E ratio of 75.03. This represents a premium compared to its industry average Forward P/E of 29.18.
Meanwhile, MNDY’s PEG ratio is currently 29.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As the market closed yesterday, the Internet – Software industry was having an average PEG ratio of 2.18.
The Internet – Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 250 industries.
