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Monday.com (MNDY) Stock Declines While Market Improves: Some Information for Investors

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The most recent trading session ended with Monday.com (MNDY - Free Report) standing at $284.31, reflecting a -0.53% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.47% gain on the day. On the other hand, the Dow registered a gain of 0.79%, and the technology-centric Nasdaq increased by 0.28%.

Shares of the project management software developer have appreciated by 10.39% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48%.

Market participants will be closely following the financial results of Monday.com in its upcoming release. On that day, Monday.com is projected to report earnings of $0.61 per share, which would represent a year-over-year decline of 4.69%. In the meantime, our current consensus estimate forecasts the revenue to be $245.48 million, indicating a 29.75% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.76 per share and a revenue of $958.94 million, signifying shifts of +49.19% and +31.42%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Monday.com. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Monday.com currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Monday.com is holding a Forward P/E ratio of 103.42. This represents a premium compared to its industry's average Forward P/E of 31.87.

One should further note that MNDY currently holds a PEG ratio of 2.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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