In the latest trading session, MongoDB (MDB) closed at $317.83, marking a +1.28% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.4% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.66%.
The stock of database platform has fallen by 4.14% in the past month, lagging the Computer and Technology sector's gain of 2.27% and the S&P 500's gain of 1.02%.
The investment community will be closely monitoring the performance of MongoDB in its forthcoming earnings report. The company's upcoming EPS is projected at $0.78, signifying a 32.76% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $589.97 million, indicating a 11.45% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.7 per share and a revenue of $2.35 billion, indicating changes of +1.09% and +17.25%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for MongoDB. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, MongoDB boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, MongoDB is presently trading at a Forward P/E ratio of 84.93. Its industry sports an average Forward P/E of 29.42, so one might conclude that MongoDB is trading at a premium comparatively.
Also, we should mention that MDB has a PEG ratio of 5.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.94 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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.
