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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) closed the most recent trading day at $188.66, moving +2.77% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.37%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%.

Shares of the project management software developer witnessed a loss of 1.16% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.04%, and the S&P 500's gain of 4.26%.

The upcoming earnings release of Monday.com will be of great interest to investors. The company's upcoming EPS is projected at $0.89, signifying a 4.71% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $312.06 million, showing a 24.33% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.97 per share and a revenue of $1.23 billion, demonstrating changes of +13.43% and +26.09%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Mondaycom. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Monday.com is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, Monday.com currently has a Forward P/E ratio of 46.19. This denotes a premium relative to the industry average Forward P/E of 30.03.

It is also worth noting that MNDY currently has a PEG ratio of 1.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 2.3 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 63, placing it within the top 26% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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