The most recent trading session ended with Monday.com (MNDY) standing at $242.05, reflecting a +0.6% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 1.51%.

The the stock of project management software developer has risen by 7.09% in the past month, leading the Computer and Technology sector's loss of 4.13% and the S&P 500's loss of 2.14%.

The investment community will be closely monitoring the performance of Monday.com in its forthcoming earnings report. 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 time, our most recent consensus estimate is projecting a revenue of $261.14 million, reflecting a 28.91% rise from the equivalent quarter last year.

Any recent changes to analyst estimates for Monday.com should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 4.52% fall in the Zacks Consensus EPS estimate. Monday.com is holding a Zacks Rank of #4 (Sell) right now.

With respect to valuation, Monday.com is currently being traded at a Forward P/E ratio of 68.96. For comparison, its industry has an average Forward P/E of 29.68, which means Monday.com is trading at a premium to the group.

Also, we should mention that MNDY has a PEG ratio of 1.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 2.16 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 35, positioning it in the top 14% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

monday.com Ltd. (MNDY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research