The most recent trading session ended with Monday.com (MNDY) standing at $221.01, reflecting a +1.49% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.23% loss on the day. At the same time, the Dow lost 0.91%, and the tech-heavy Nasdaq gained 0.1%.

The project management software developer's stock has dropped by 13.67% in the past month, exceeding the Computer and Technology sector's loss of 16.18% and lagging the S&P 500's loss of 12.13%.

The investment community will be paying close attention to the earnings performance of Monday.com in its upcoming release. In that report, analysts expect Monday.com to post earnings of $0.68 per share. This would mark year-over-year growth of 11.48%. At the same time, our most recent consensus estimate is projecting a revenue of $275.04 million, reflecting a 26.8% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.27 per share and revenue of $1.22 billion, which would represent changes of -6.57% and +25.01%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Monday.com is currently a Zacks Rank #3 (Hold).

With respect to valuation, Monday.com is currently being traded at a Forward P/E ratio of 66.62. Its industry sports an average Forward P/E of 23.71, so one might conclude that Monday.com is trading at a premium comparatively.

One should further note that MNDY currently holds a PEG ratio of 1.63. 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 1.77 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 34% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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This article originally published on Zacks Investment Research (zacks.com).

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