We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MongoDB, Inc. (MDB) Hits Fresh High: Is There Still Room to Run?
Read MoreHide Full Article
Have you been paying attention to shares of MongoDB (MDB - Free Report) ? Shares have been on the move with the stock up 35.5% over the past month. The stock hit a new 52-week high of $414.48 in the previous session. MongoDB has gained 102.2% since the start of the year compared to the 36.1% move for the Zacks Computer and Technology sector and the 48.4% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on June 1, 2023, MongoDB reported EPS of $0.56 versus consensus estimate of $0.19 while it beat the consensus revenue estimate by 6.35%.
For the current fiscal year, MongoDB is expected to post earnings of $1.51 per share on $1.54 billion in revenues. This represents an 86.42% change in EPS on a 19.78% change in revenues. For the next fiscal year, the company is expected to earn $2.04 per share on $1.87 billion in revenues. This represents a year-over-year change of 35.1% and 21.69%, respectively.
Valuation Metrics
MongoDB may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
MongoDB has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 263.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 40.8X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 18.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, MongoDB currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if MongoDB meets the list of requirements. Thus, it seems as though MongoDB shares could have a bit more room to run in the near term.
How Does MDB Stack Up to the Competition?
Shares of MDB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Meta Platforms, Inc. (META - Free Report) . META has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Meta Platforms, Inc. beat our consensus estimate by 34.69%, and for the current fiscal year, META is expected to post earnings of $11.94 per share on revenue of $127.08 billion.
Shares of Meta Platforms, Inc. have gained 7.8% over the past month, and currently trade at a forward P/E of 23.9X and a P/CF of 20.99X.
The Internet - Software industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MDB and META, even beyond their own solid fundamental situation.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MongoDB, Inc. (MDB) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of MongoDB (MDB - Free Report) ? Shares have been on the move with the stock up 35.5% over the past month. The stock hit a new 52-week high of $414.48 in the previous session. MongoDB has gained 102.2% since the start of the year compared to the 36.1% move for the Zacks Computer and Technology sector and the 48.4% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on June 1, 2023, MongoDB reported EPS of $0.56 versus consensus estimate of $0.19 while it beat the consensus revenue estimate by 6.35%.
For the current fiscal year, MongoDB is expected to post earnings of $1.51 per share on $1.54 billion in revenues. This represents an 86.42% change in EPS on a 19.78% change in revenues. For the next fiscal year, the company is expected to earn $2.04 per share on $1.87 billion in revenues. This represents a year-over-year change of 35.1% and 21.69%, respectively.
Valuation Metrics
MongoDB may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
MongoDB has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 263.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 40.8X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 18.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, MongoDB currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if MongoDB meets the list of requirements. Thus, it seems as though MongoDB shares could have a bit more room to run in the near term.
How Does MDB Stack Up to the Competition?
Shares of MDB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Meta Platforms, Inc. (META - Free Report) . META has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Meta Platforms, Inc. beat our consensus estimate by 34.69%, and for the current fiscal year, META is expected to post earnings of $11.94 per share on revenue of $127.08 billion.
Shares of Meta Platforms, Inc. have gained 7.8% over the past month, and currently trade at a forward P/E of 23.9X and a P/CF of 20.99X.
The Internet - Software industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MDB and META, even beyond their own solid fundamental situation.