Monday.com is just above a buy point in a cup base, according to IBD MarketSmith. MNDY stock is today's selection for IBD 50 Stocks To Watch.
Shares gapped up and retook their 10-week moving average in strong volume after third-quarter results came out Nov. 13.
The stock then broke out to new highs soon after Monday.com held its investor day in early December. The stock retreated after that, but found support at the 50-day moving average. Today, it is just above a buy zone from the 185.81 handle buy point to 195.10. In addition, 198.15 acts as an alternative entry.
Monday.com listed on the Nasdaq at an initial price of 155 per share in June 2021. Among its investors, Salesforce's venture wing purchased $75 million of the stock in a private placement even as the stock started trading.
Shares popped on the first day of trading and reached an all-time high of 450 in November 2021. In 2023, the enterprise software stock rose 54% versus the S&P 500's 24% gain.
MNDY Stock Shows Strong Ratings, Fund Ownership
MNDY has a Composite Rating of 98 and EPS Rating of 81. The Relative Strength Rating of 93 also shows a superior performance.
Moreover, mutual funds own 76% of shares outstanding. More funds have been buying the stock in recent weeks, giving the stock an Accumulation/Distribution Rating of A+.
The T. Rowe Price New Horizons Fund (PRNHX) and Lord Abbett Developing Growth Fund (LAGWX) hold shares of the stock. Among ETFs, the iShares U.S. Small Cap Equity Factor ETF and the SPDR Portfolio MSCI Global Stock Market ETF hold shares of Monday.com.
Sales growth ranged between 38% and 84% over the past seven quarters. Earnings surged to 64 cents a share in Q3 from 5 cents a year earlier. In the four previous quarters, the company posted earnings vs. year-ago losses.
Sales And Earnings Outlook
For the fourth quarter, the company expects sales to increase 32% to $197 million at the midpoint of its forecast. For the full year, the software maker sees sales rising 40% to $724 million.
Wall Street sees the company achieving $1.97 per share, or a 35% profit growth in 2024.
Monday.com offers project management and other business tools. It provides a low-code or no-code platform for building tools.
MNDY stock is in the enterprise software group which holds 27th place among IBD's 197 industry groups.
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