Earnings Estimates Rising for Monday.com (MNDY): Will It Gain?
Monday.com (MNDY) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this project management software developer is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
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Consensus earnings estimates for the next quarter and full year have moved considerably higher for Monday.com, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
The earnings estimate of $0.78 per share for the current quarter represents a change of +20% from the number reported a year ago.
Over the last 30 days, the Zacks Consensus Estimate for Monday.com has increased 640% because six estimates have moved higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $3.20 per share for the full year, which represents a change of +72.97% from the prior-year number.
The revisions trend for the current year also appears quite promising for Monday.com, with eight estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 67.33%.
Favorable Zacks Rank
The promising estimate revisions have helped Monday.com earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Monday.com because of its solid estimate revisions, as evident from the stock's 5.4% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
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