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In the latest trading session, Monday.com (MNDY) closed at $234.80, marking a +1.27% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.1%. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 1.35%.
Coming into today, shares of the project management software developer had lost 21.7% in the past month. In that same time, the Computer and Technology sector gained 5.09%, while the S&P 500 gained 0.22%.
Analysts and investors alike will be keeping a close eye on the performance of Monday.com in its upcoming earnings disclosure. On that day, Monday.com is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 20%. Our most recent consensus estimate is calling for quarterly revenue of $260.96 million, up 28.82% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.20 per share and revenue of $964.98 million, which would represent changes of +72.97% and +32.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Monday.com should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Monday.com boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Monday.com is presently trading at a Forward P/E ratio of 72.57. This represents a premium compared to its industry's average Forward P/E of 32.85.
It's also important to note that MNDY currently trades at a PEG ratio of 1.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.37.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 24, placing it within the top 10% of over 250 industries.