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Monday.com (MNDY) Increases Yet Falls Behind Market: What Investors Need to Know

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The latest trading session saw Monday.com (MNDY - Free Report) ending at $277.59, denoting a +0.58% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.9%. Elsewhere, the Dow gained 0.81%, while the tech-heavy Nasdaq added 1.22%.

The project management software developer's stock has climbed by 10.79% in the past month, exceeding the Computer and Technology sector's gain of 5.76% and the S&P 500's gain of 3.15%.

The investment community will be closely monitoring the performance of Monday.com in its forthcoming earnings report. The company is forecasted to report an EPS of $0.61, showcasing a 4.69% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $245.56 million, reflecting a 29.79% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.76 per share and a revenue of $959.02 million, indicating changes of +49.19% and +31.43%, 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 company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Monday.com is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Monday.com is currently exchanging hands at a Forward P/E ratio of 99.89. This indicates a premium in contrast to its industry's Forward P/E of 30.01.

Investors should also note that MNDY has a PEG ratio of 2.37 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.01.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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