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Monday.com (MNDY) Laps the Stock Market: Here's Why

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Monday.com (MNDY - Free Report) closed the most recent trading day at $227.38, moving +0.9% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.06%.

The the stock of project management software developer has fallen by 18.22% in the past month, lagging the Computer and Technology sector's loss of 0.39% and the S&P 500's loss of 2.7%.

The upcoming earnings release of Monday.com will be of great interest to investors. The company is forecasted to report an EPS of $0.78, showcasing a 20% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $261.14 million, indicating a 28.91% upward movement from the same quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for Monday.com. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.52% lower. Right now, Monday.com possesses a Zacks Rank of #3 (Hold).

Investors should also note Monday.com's current valuation metrics, including its Forward P/E ratio of 63.89. This signifies a premium in comparison to the average Forward P/E of 28.07 for its industry.

We can also see that MNDY currently has a PEG ratio of 1.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 2.1 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 25, finds itself in the top 10% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MNDY in the coming trading sessions, be sure to utilize Zacks.com.


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