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Monday.com (MNDY) closed the most recent trading day at $243.16, moving -1.56% from the previous trading session. This move lagged the S&P 500's daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 1.01%, while the tech-heavy Nasdaq depreciated by 0.14%.
Heading into today, shares of the project management software developer had lost 16.77% over the past month, lagging the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22% in that time.
Market participants will be closely following the financial results of Monday.com in its upcoming release. On that day, Monday.com is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 11.48%. Meanwhile, our latest consensus estimate is calling for revenue of $275.04 million, up 26.8% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.27 per share and a revenue of $1.22 billion, demonstrating changes of -6.57% and +25.01%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Monday.com. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained unchanged. Monday.com is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Monday.com is presently trading at a Forward P/E ratio of 75.56. This represents a premium compared to its industry's average Forward P/E of 26.45.
Meanwhile, MNDY's PEG ratio is currently 1.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% of all 250+ industries.