Core Viewpoint - MongoDB is experiencing solid improvement in earnings estimates, which is likely to drive its stock price higher due to positive short-term price momentum [1][2]. Earnings Estimates - Analysts are increasingly optimistic about MongoDB's earnings prospects, leading to higher estimates that correlate with stock price movements [2]. - For the current quarter, MongoDB is expected to earn $0.78 per share, reflecting a decrease of 32.8% from the previous year, but the Zacks Consensus Estimate has increased by 11.02% due to eight upward revisions [5]. - For the full year, the expected earnings per share is $3.64, showing a slight year-over-year decline of 0.6%, with 11 estimates moving higher recently [6]. Zacks Rank - MongoDB has achieved a Zacks Rank of 2 (Buy), indicating strong agreement among analysts in raising earnings estimates, which historically leads to outperformance [3][7]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [7]. Stock Performance - The stock has gained 42.8% over the past four weeks, driven by favorable estimate revisions and positive earnings growth prospects [8].

Core Insights - MongoDB's stock closed at $212.70, reflecting a -2.7% change from the previous day, underperforming compared to the S&P 500's -0.24% loss [1] - The upcoming earnings report is expected to show an EPS of $0.64, an 8.57% decline year-over-year, with anticipated revenue of $551.05 million, a 15.26% increase from the same quarter last year [2] - For the full year, earnings are projected at $3.07 per share, down 16.12% from the previous year, while revenue is expected to reach $2.28 billion, up 13.48% [3] Analyst Estimates - Recent changes in analyst estimates for MongoDB are crucial as they reflect short-term business trends and analysts' confidence in performance [4] - The Zacks Rank system, which evaluates estimate changes, indicates MongoDB currently holds a Zacks Rank of 3 (Hold), with no changes in the EPS estimate over the last 30 days [6] Valuation Metrics - MongoDB's Forward P/E ratio stands at 71.25, significantly higher than the industry average of 28.95, indicating a premium valuation [7] - The company has a PEG ratio of 7.31, compared to the Internet - Software industry's average PEG ratio of 2.26, suggesting a higher valuation relative to growth expectations [8] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, ranks in the top 30% of all industries, with a Zacks Industry Rank of 74 [8] - Research indicates that industries in the top 50% outperform those in the bottom half by a factor of 2 to 1, highlighting the competitive positioning of MongoDB's industry [9]

Company Performance - MongoDB closed at $241.37, marking a +2.64% increase from the previous day, outperforming the S&P 500's gain of 0.4% [1] - Over the past month, MongoDB shares gained 12.41%, surpassing the Computer and Technology sector's gain of 6.84% and the S&P 500's gain of 4.61% [1] Upcoming Earnings Report - The upcoming earnings report is expected to show an EPS of $0.64, reflecting an 8.57% decline compared to the same quarter last year [2] - Projected revenue is estimated at $551.05 million, which is a 15.26% increase from the previous year [2] Annual Estimates - For the annual period, earnings are anticipated to be $3.07 per share, indicating a -16.12% change from last year, while revenue is projected at $2.28 billion, showing a +13.48% increase [3] Analyst Estimates and Stock Performance - Changes in analyst estimates are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism [3] - MongoDB currently holds a Zacks Rank of 2 (Buy), with no changes in the Zacks Consensus EPS estimate over the past month [5] Valuation Metrics - MongoDB has a Forward P/E ratio of 76.64, significantly higher than its industry's Forward P/E of 29.31 [6] - The company also has a PEG ratio of 7.87, compared to the Internet - Software industry's average PEG ratio of 2.19 [6] Industry Context - The Internet - Software industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 79, placing it in the top 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]