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MongoDB (MDB) Registers a Bigger Fall Than the Market: Important Facts to Note

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MongoDB (MDB - Free Report) closed the most recent trading day at $237.89, moving -2.65% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.74%, while the tech-heavy Nasdaq depreciated by 0.03%.

Shares of the database platform have appreciated by 19.53% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.58%, and the S&P 500's gain of 2.68%.

Market participants will be closely following the financial results of MongoDB in its upcoming release. The company's earnings per share (EPS) are projected to be $0.64, reflecting a 8.57% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $551.05 million, up 15.26% from the year-ago period.

MDB's full-year Zacks Consensus Estimates are calling for earnings of $3.07 per share and revenue of $2.28 billion. These results would represent year-over-year changes of -16.12% and +13.48%, respectively.

It is also important to note the recent changes to analyst estimates for MongoDB. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. MongoDB presently features a Zacks Rank of #1 (Strong Buy).

In terms of valuation, MongoDB is presently being traded at a Forward P/E ratio of 79.64. This signifies a premium in comparison to the average Forward P/E of 28.48 for its industry.

It's also important to note that MDB currently trades at a PEG ratio of 8.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.18 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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