Group 1 - monday.com recently experienced a contraction in its stock price, presenting a potential buying opportunity [1] - The company has a strong strategy and produces impressive gross margins, positioning it favorably against industry leaders [1] - The focus is primarily on long-term investments in technology stocks, indicating a strategic approach to investment [1]

Core Viewpoint - Monday.com (MNDY) is expected to report strong revenue growth for the fourth quarter of fiscal 2024, with a consensus estimate of $261.14 million, reflecting a year-over-year increase of 28.91% [1]. Revenue and Earnings Estimates - The company anticipates total revenues between $260 million and $262 million, indicating a year-over-year growth of 28-29% [1]. - The consensus estimate for MNDY's earnings per share (EPS) is steady at 78 cents, representing a 20% increase from the previous year [2]. Recent Performance and Surprises - In the last reported quarter, Monday.com achieved an earnings surprise of 39.34%, consistently beating the Zacks Consensus Estimate over the last four quarters, with an average surprise of 71.62% [3]. Factors Influencing Upcoming Results - The company has implemented price increases that are expected to contribute approximately 200 basis points to net dollar retention rates in fiscal 2024 [6]. - New pricing has been rolled out to about 50% of customers, with an anticipated total impact of $80 million between fiscal 2024 and 2026 [7]. - The enterprise segment is a focus area, with plans to accelerate sales hiring in response to previous softness in customer additions [7]. Product Expansion and Growth Drivers - Product expansion remains a key growth driver, with the monday service offering expected to launch broadly by early 2025 [8]. - The monday CRM has shown strong growth, with accounts reaching 24,735 in the third quarter, up 124% year over year [9]. - AI capabilities on the platform have increased by more than 250% quarter over quarter, although monetization is not expected to significantly impact fourth-quarter results [10]. Operating Efficiency and Financial Guidance - The company is guiding for fourth-quarter non-GAAP operating income between $29 million and $31 million, with a margin of 11-12%, and free cash flow of $63-$66 million, representing a margin of 24-25% [10]. Key Metrics and Analyst Focus - Analysts will focus on net dollar retention rates (111% in the third quarter), enterprise customer additions, and progress in cross-selling newer products [11]. Stock Performance and Valuation - MNDY shares have gained 25.1% over the past six months, underperforming the Zacks Internet - Software industry's appreciation of 44.3% [12]. - The stock is considered to have a stretched valuation, with a Price/Sales ratio of 10.02X compared to the industry average of 3.29X [16]. Competitive Landscape - The company faces competition from tech giants like Asana and Atlassian, which are actively enhancing their project and work management solutions [14]. Challenges and Considerations - Potential headwinds include macroeconomic uncertainty affecting enterprise spending and sales cycles, as well as slower growth in the developer-focused product segment [13]. - Leadership changes, including the appointment of a new COO and the departure of the CRO, may impact near-term execution [10].

Stock Performance - Monday com (MNDY) closed at $248 90, reflecting a -1 91% shift from the previous trading day, lagging behind the S&P 500's daily gain of 0 53%, the Dow's gain of 0 93%, and the Nasdaq's increase of 0 22% [1] - Shares of Monday com gained 8 07% in the past month, outperforming the Computer and Technology sector's gain of 3 02% and the S&P 500's gain of 2 69% [2] Earnings and Revenue Expectations - Monday com is scheduled to release its earnings on February 10, 2025, with analysts expecting earnings of $0 78 per share, marking a year-over-year growth of 20% [3] - The company's quarterly revenue is expected to be $261 14 million, up 28 91% from the year-ago period [3] Analyst Estimates and Revisions - Recent changes to analyst estimates for Monday com reflect the near-term business trends, with upward revisions indicating positivity towards the company's business operations and profitability [4] - The Zacks Consensus EPS estimate has decreased by 4 52% over the last 30 days, and Monday com currently holds a Zacks Rank 4 (Sell) [6] Valuation Metrics - Monday com has a Forward P/E ratio of 73 06, which is a premium compared to the industry average of 29 37 [7] - The company's PEG ratio is 1 72, lower than the Internet - Software industry average of 2 27 [8] Industry Overview - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 38, placing it within the top 16% of over 250 industries [9] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Monday.com (MNDY) shares have gained 10.4% in the trailing six-month period compared with the Zacks Computer & Technology sector’s return of 14.3% and the Zacks Internet - Software industry’s rise of 30.3%.MNDY shares have also underperformed its industry peer, BILL Holdings (BILL) which has gained 80.7% over the trailing six-months.The underperformance can be attributed to macroeconomic pressure and stiff competition from tech giants like Asana (ASAN) and Atlassian (TEAM) . These companies are making stron ...

Analyst Estimates and Stock Performance - Positive revisions to analyst estimates for Monday com indicate a favorable business outlook [1] - Estimate changes are directly linked to near future stock price performance [2] - The Zacks Rank system, with a history of outperformance, currently rates Monday com as a Hold (3) [3] - Over the past month, the Zacks Consensus EPS estimate for Monday com has decreased by 4 52% [3] Valuation Metrics - Monday com has a Forward P E ratio of 63 89, significantly higher than the industry average of 28 07 [4] - The company s PEG ratio is 1 5, below the industry average of 2 1, indicating a relatively lower valuation considering earnings growth [4] Industry and Sector Performance - The Internet Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 25, placing it in the top 10% of all industries [5] - Top 50% rated industries outperform the bottom half by a factor of 2 to 1 [5] Recent Stock Performance - Monday com s stock closed at $227 38, up 0 9% from the previous session, outperforming the S&P 500 s 0 16% gain [7] - Over the past month, the stock has declined by 18 22%, underperforming the Computer and Technology sector s 0 39% loss and the S&P 500 s 2 7% loss [7] Upcoming Earnings - Monday com is expected to report an EPS of $0 78, a 20% increase from the same quarter last year [8] - Revenue is forecasted at $261 14 million, a 28 91% increase from the corresponding quarter of the prior year [8]

In the latest market close, Monday.com (MNDY) reached $237, with a +0.74% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a drop of 0.06%, and the technology-dominated Nasdaq saw an increase of 1.24%.The upcoming earnings release of Monday.com will be of great interest to investors. The company is predicted to post an EPS of $0.78, indicating a 20% growth compared to the equivalent quarter last year. At the same ti ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, January 3rd:Norwegian Cruise Line Holdings Ltd. (NCLH) : This cruise company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days.Norwegian has a PEG ratio of 0.21 compared with 0.79 for the industry. The company possesses a Growth Score  of B.monday.com Ltd. (MNDY) : This software applications company carries a Zacks R ...

The stock is putting out some of the best financial numbers on Wall Street yet trades at a far cheaper valuation than other high performers.Growth stocks can be a wild ride. The long-term upside usually comes with stomach-churning volatility. Monday.com (MNDY 1.27%) is currently experiencing ups and downs. At the time of this writing, shares have fallen approximately 28% from their highs.The company's software-as-a-service business model is disrupting how employees collaborate in the workplace, and addition ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, December 23:Pitney Bowes Inc. (PBI) : This technology-driven company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.6% over the last 60 days.Pitney Bowes' shares gained 54.0% over the last six months compared with the S&P 500’s advanced of 8.7%. The company possesses a Momentum Score of A.monday.com Ltd. (MNDY) : This software development company ...

Company Overview - Monday.com (MNDY) shares increased by 7.9% to close at $242.49, following a period of 18.7% loss over the past four weeks, indicating a significant rebound in trading volume [1] - The company is expected to report quarterly earnings of $0.78 per share, reflecting a year-over-year increase of 20%, with revenues projected at $260.96 million, up 28.8% from the previous year [2] Earnings and Growth Metrics - The consensus EPS estimate for Monday.com has remained stable over the last 30 days, suggesting that the stock's price movement may not sustain without changes in earnings estimate revisions [3] - The company has demonstrated strong growth metrics, including a 26% compound annual growth rate (CAGR) in its customer base and gross margins of 89.65% [5] Industry Context - Monday.com operates within the Zacks Internet - Software industry, where it competes with companies like Sangoma Technologies Corporation (SANG), which saw a 2.6% increase in its stock price [4] - The stock currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [7]