Monday.com (MNDY) Soars 4.4%: Is Further Upside Left in the Stock?
Monday.com (MNDY) shares soared 4.4% in the last trading session to close at $140.54. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.9% gain over the past four weeks.
The recent surge in Monday.com’s share price can be contributed to investors bullish sentiments as the company keeps on expanding its product offerings. Monday.com has been continuously expanding its enterprise customer base with its latest Work OS product offerings such as Monday projects, Monday sales CRM, Monday dev and Monday marketer. Also, healthy expansion rate among existing customers is expected to impact the top line growth in the coming quarters.
This project management software developer is expected to post quarterly loss of $0.53 per share in its upcoming report, which represents a year-over-year change of -103.9%. Revenues are expected to be $130.64 million, up 57.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Monday.com, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MNDY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Monday.com belongs to the Zacks Internet - Software industry. Another stock from the same industry, JFrog Ltd. (FROG), closed the last trading session 1.7% higher at $21.65. Over the past month, FROG has returned -12%.
JFrog Ltd.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0. Compared to the company's year-ago EPS, this represents a change of -100%. JFrog Ltd. currently boasts a Zacks Rank of #3 (Hold).
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