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Monday.com (MNDY - Free Report) is a no-code productivity software that provides a platform for team collaboration and project management. It offers customizable features and tools to streamline workflows, improve productivity, and facilitate effective communication within organizations.
MNDY is a rapidly growing, high margin technology stock that has the potential to offer exceptionally strong returns. In addition to a Zacks Rank #1 (Strong Buy) boosting near term expectations, monday.com stock also boasts a compelling technical trade setup.
Image Source: Zacks Investment Research
Upward Trending Earnings Estimates
Earnings estimates for monday.com have been revised dramatically higher over the last two months and now project positive earnings for the first time in the business’ history.
Current quarter expectations have been upgraded from -$0.22 per share to $0.14 per share and are forecast to climb 142% YoY. FY23 earnings estimates have been boosted from -$0.39 per share all the way to $0.58 per share and are expected to grow 180% YoY.
With management now focusing on running a net profitable enterprise investors can sit comfortably as the 88% gross margins begin to produce considerable earnings.
Sales at MNDY are forecast to grow very fast as well, with current quarter sales expected to increase 37% YoY, and FY23 sales set to climb 36% YoY.
Image Source: Zacks Investment Research
Technical Setup
MNDY has been forming one of the cleanest stage one breakout patterns I have seen in some time. After getting hammered lower during the bear market of 2022, monday.com built out a 14-month base from which it may launch higher from.
With a very tight consolidation forming over the last few weeks, investors have a compelling risk-reward setup to trade off. If the price of MNDY stock can trade above the $168 level on above average volume, it could send the stock much high. Alternatively, if the price trades below $158, the setup is invalid, and investors may want to wait for another opportunity.
Image Source: TradingView
Valuation
MNDY is currently trading at a one-year forward sales multiple of 10.2x, which is above the market average of 4x, and just above its two-year median of 9.8x. This is a premium valuation based on any measurement, but when you have the growth and business economics of monday.com investors are forced to pay up.
Additionally, at the current level, it is well below its 2021 highs of 48x sales, which demonstrates just how frothy the market was at that time.
Image Source: Zacks Investment Research
Bottom Line
Monday.com is a hyper-growth business with a set of convincing variables writing a bullish narrative. Whether you are a trader looking for a quick profit opportunity or, an investor planning to hold for the long-term, monday.com fits the bill across the investment spectrum.
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Bull of the Day: monday.com (MNDY)
Monday.com (MNDY - Free Report) is a no-code productivity software that provides a platform for team collaboration and project management. It offers customizable features and tools to streamline workflows, improve productivity, and facilitate effective communication within organizations.
MNDY is a rapidly growing, high margin technology stock that has the potential to offer exceptionally strong returns. In addition to a Zacks Rank #1 (Strong Buy) boosting near term expectations, monday.com stock also boasts a compelling technical trade setup.
Image Source: Zacks Investment Research
Upward Trending Earnings Estimates
Earnings estimates for monday.com have been revised dramatically higher over the last two months and now project positive earnings for the first time in the business’ history.
Current quarter expectations have been upgraded from -$0.22 per share to $0.14 per share and are forecast to climb 142% YoY. FY23 earnings estimates have been boosted from -$0.39 per share all the way to $0.58 per share and are expected to grow 180% YoY.
With management now focusing on running a net profitable enterprise investors can sit comfortably as the 88% gross margins begin to produce considerable earnings.
Sales at MNDY are forecast to grow very fast as well, with current quarter sales expected to increase 37% YoY, and FY23 sales set to climb 36% YoY.
Image Source: Zacks Investment Research
Technical Setup
MNDY has been forming one of the cleanest stage one breakout patterns I have seen in some time. After getting hammered lower during the bear market of 2022, monday.com built out a 14-month base from which it may launch higher from.
With a very tight consolidation forming over the last few weeks, investors have a compelling risk-reward setup to trade off. If the price of MNDY stock can trade above the $168 level on above average volume, it could send the stock much high. Alternatively, if the price trades below $158, the setup is invalid, and investors may want to wait for another opportunity.
Image Source: TradingView
Valuation
MNDY is currently trading at a one-year forward sales multiple of 10.2x, which is above the market average of 4x, and just above its two-year median of 9.8x. This is a premium valuation based on any measurement, but when you have the growth and business economics of monday.com investors are forced to pay up.
Additionally, at the current level, it is well below its 2021 highs of 48x sales, which demonstrates just how frothy the market was at that time.
Image Source: Zacks Investment Research
Bottom Line
Monday.com is a hyper-growth business with a set of convincing variables writing a bullish narrative. Whether you are a trader looking for a quick profit opportunity or, an investor planning to hold for the long-term, monday.com fits the bill across the investment spectrum.