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Monday.com (MNDY) Stock Declines While Market Improves: Some Information for Investors

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In the latest trading session, Monday.com (MNDY - Free Report) closed at $65.87, marking a -1.19% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.02% for the day. On the other hand, the Dow registered a gain of 1.62%, and the technology-centric Nasdaq increased by 0.89%.

Heading into today, shares of the project management software developer had lost 2.11% over the past month, lagging the Computer and Technology sector's gain of 20.71% and the S&P 500's gain of 12.23%.

Market participants will be closely following the financial results of Monday.com in its upcoming release. The company plans to announce its earnings on May 11, 2026. On that day, Monday.com is projected to report earnings of $0.96 per share, which would represent a year-over-year decline of 12.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $338.9 million, up 20.07% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.15 per share and revenue of $1.46 billion, which would represent changes of -5.68% and +18.24%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Mondaycom. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Monday.com holds a Zacks Rank of #3 (Hold).

In terms of valuation, Monday.com is currently trading at a Forward P/E ratio of 16.05. For comparison, its industry has an average Forward P/E of 18.9, which means Monday.com is trading at a discount to the group.

It is also worth noting that MNDY currently has a PEG ratio of 0.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MNDY's industry had an average PEG ratio of 1.07 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 250 industries.

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.

To follow MNDY in the coming trading sessions, be sure to utilize Zacks.com.

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