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Monday.com (MNDY) Rises Higher Than Market: Key Facts

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In the latest market close, Monday.com (MNDY - Free Report) reached $237, with a +0.74% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a drop of 0.06%, and the technology-dominated Nasdaq saw an increase of 1.24%.

The upcoming earnings release of Monday.com will be of great interest to investors. The company is predicted to post an EPS of $0.78, indicating a 20% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $260.96 million, reflecting a 28.82% rise from the equivalent quarter last year.

Investors should also note any recent changes to analyst estimates for Monday.com. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Monday.com boasts a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Monday.com currently has a Forward P/E ratio of 65.9. Its industry sports an average Forward P/E of 41.55, so one might conclude that Monday.com is trading at a premium comparatively.

Investors should also note that MNDY has a PEG ratio of 1.55 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 of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 3.4.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 23, placing it within the top 10% of over 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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