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Monday.com (MNDY) Beats Stock Market Upswing: What Investors Need to Know

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Monday.com (MNDY - Free Report) ended the recent trading session at $291.08, demonstrating a +2.27% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.27%.

Prior to today's trading, shares of the project management software developer had gained 1.66% lagged the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97%.

Investors will be eagerly watching for the performance of Monday.com in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.84, marking a 10.64% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $293.15 million, indicating a 24.16% upward movement from the same quarter last year.

MNDY's full-year Zacks Consensus Estimates are calling for earnings of $3.79 per share and revenue of $1.22 billion. These results would represent year-over-year changes of +8.29% and +25.59%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Mondaycom. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.08% lower. Monday.com currently has a Zacks Rank of #3 (Hold).

Investors should also note Monday.com's current valuation metrics, including its Forward P/E ratio of 75.15. Its industry sports an average Forward P/E of 27.71, so one might conclude that Monday.com is trading at a premium comparatively.

Meanwhile, MNDY's PEG ratio is currently 29.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.15 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 65, positioning it in the top 27% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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