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Monday.com (MNDY) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest close session, Monday.com (MNDY - Free Report) was down 4.87% at $139.22. The stock's change was less than the S&P 500's daily loss of 0.19%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 0.1%.

The stock of project management software developer has fallen by 3.12% in the past month, lagging the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.26%.

The investment community will be paying close attention to the earnings performance of Monday.com in its upcoming release. It is anticipated that the company will report an EPS of $0.91, marking a 15.74% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $328.99 million, up 22.77% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.28 per share and revenue of $1.23 billion, indicating changes of +22.29% and 0%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Mondaycom. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Monday.com is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Monday.com has a Forward P/E ratio of 29.5 right now. This represents a premium compared to its industry average Forward P/E of 24.44.

We can additionally observe that MNDY currently boasts a PEG ratio of 1.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.5.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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