In the latest close session, MongoDB (MDB) was down 1.25% at $354.88. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, lost 0.8%.
Coming into today, shares of the database platform had lost 2.43% in the past month. In that same time, the Computer and Technology sector lost 5.47%, while the S&P 500 lost 1.43%.
The investment community will be closely monitoring the performance of MongoDB in its forthcoming earnings report. The company is expected to report EPS of $1.6, up 60% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $733.61 million, indicating a 24.05% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.07 per share and revenue of $2.94 billion, indicating changes of +22.13% and +19.26%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for MongoDB. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 127.27% upward. MongoDB is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, MongoDB is currently exchanging hands at a Forward P/E ratio of 59.18. This expresses a premium compared to the average Forward P/E of 19.52 of its industry.
It is also worth noting that MDB currently has a PEG ratio of 4.85. 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. The Internet - Software industry currently had an average PEG ratio of 1.09 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
