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Monday.com (MNDY) Suffers a Larger Drop Than the General Market: Key Insights

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Monday.com (MNDY - Free Report) closed at $144.67 in the latest trading session, marking a -3.64% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.16%. Elsewhere, the Dow saw a downswing of 0.47%, while the tech-heavy Nasdaq depreciated by 1.81%.

Heading into today, shares of the project management software developer had lost 1.98% over the past month, lagging the Computer and Technology sector's gain of 1% and the S&P 500's gain of 1.03%.

Market participants will be closely following the financial results of Monday.com in its upcoming release. In that report, analysts expect Monday.com to post earnings of $0.91 per share. This would mark a year-over-year decline of 15.74%. At the same time, our most recent consensus estimate is projecting a revenue of $328.99 million, reflecting a 22.77% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.28 per share and a revenue of $1.23 billion, representing changes of +22.29% and +26.25%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Mondaycom. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Monday.com presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Monday.com is currently exchanging hands at a Forward P/E ratio of 35.11. This signifies a premium in comparison to the average Forward P/E of 28.79 for its industry.

It is also worth noting that MNDY currently has a PEG ratio of 1.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MNDY's industry had an average PEG ratio of 1.88 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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