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Monday.com (MNDY) Ascends While Market Falls: Some Facts to Note

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In the latest close session, Monday.com (MNDY - Free Report) was up +2.07% at $149.95. This move outpaced the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, added 0.16%.

Shares of the project management software developer have depreciated by 9.6% over the course of the past month, underperforming the Computer and Technology sector's loss of 1%, and the S&P 500's gain of 1.19%.

Analysts and investors alike will be keeping a close eye on the performance of Monday.com in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.91, signifying a 15.74% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $328.99 million, indicating a 22.77% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.28 per share and revenue of $1.23 billion. These totals would mark changes of +22.29% and 0%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Mondaycom. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Monday.com is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Monday.com is holding a Forward P/E ratio of 29.61. This signifies a premium in comparison to the average Forward P/E of 25 for its industry.

Meanwhile, MNDY's PEG ratio is currently 1.07. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.58.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% 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.

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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