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MongoDB (MDB) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, MongoDB (MDB - Free Report) closed at $447.55, marking a +0.92% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq added 0.9%.

The the stock of database platform has risen by 10.72% in the past month, leading the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 3.85%.

The investment community will be paying close attention to the earnings performance of MongoDB in its upcoming release. The company is slated to reveal its earnings on March 7, 2024. The company's earnings per share (EPS) are projected to be $0.46, reflecting a 19.3% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $431.99 million, showing a 19.56% escalation compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for MongoDB. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, MongoDB possesses a Zacks Rank of #3 (Hold).

Digging into valuation, MongoDB currently has a Forward P/E ratio of 140.78. For comparison, its industry has an average Forward P/E of 31.67, which means MongoDB is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 26% of all industries, numbering over 250.

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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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