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Monday.com (MNDY) Stock Sinks As Market Gains: Here's Why

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Monday.com (MNDY - Free Report) ended the recent trading session at $73.91, demonstrating a -2.69% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.46%. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 2.03%.

The project management software developer's shares have seen an increase of 13.85% over the last month, not keeping up with the Computer and Technology sector's gain of 19.39% and outstripping the S&P 500's gain of 10.32%.

The investment community will be closely monitoring the performance of Monday.com in its forthcoming earnings report. The company is scheduled to release its earnings on May 11, 2026. It is anticipated that the company will report an EPS of $0.96, marking a 12.73% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $338.9 million, indicating a 20.07% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.15 per share and a revenue of $1.46 billion, indicating changes of -5.68% and +18.24%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Mondaycom. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Monday.com holds a Zacks Rank of #3 (Hold).

Looking at valuation, Monday.com is presently trading at a Forward P/E ratio of 18.29. This represents a discount compared to its industry average Forward P/E of 19.67.

Also, we should mention that MNDY has a PEG ratio of 0.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.13.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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