Why Monday.com (MNDY) Outpaced the Stock Market Today
In the latest market close, Monday.com (MNDY) reached $181.76, with a +0.42% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.17%. Elsewhere, the Dow saw an upswing of 0.32%, while the tech-heavy Nasdaq depreciated by 0.03%.
The project management software developer’s shares have seen a decrease of 9.59% over the last month, not keeping up with the Computer and Technology sector’s gain of 0.39% and the S&P 500’s gain of 0.17%.
The investment community will be paying close attention to the earnings performance of Monday.com in its upcoming release. The company is slated to reveal its earnings on May 15, 2024. The company’s upcoming EPS is projected at $0.39, signifying a 178.57% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $210.33 million, showing a 29.63% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.92 per share and a revenue of $933.51 million, demonstrating changes of +3.78% and +27.93%, respectively, from the preceding year.
Any recent changes to analyst estimates for Monday.com should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 past month, the Zacks Consensus EPS estimate remained stagnant. Monday.com is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Monday.com is presently being traded at a Forward P/E ratio of 94.48. Its industry sports an average Forward P/E of 30.5, so one might conclude that Monday.com is trading at a premium comparatively.
The Internet – Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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monday.com Ltd. (MNDY) : Free Stock Analysis Report
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