You would be hard pressed to find a company that has stronger fundamentals than software maker Monday.com. For example, its earnings growth ranged from 115% to 269% every quarter this past year. Its revenue growth has been similarly strong over that period. On Tuesday the Relative Strength (RS) Rating for Monday.com stock climbed to 84, up 12 points from 72 the day before.
The upgrade means that Monday.com stock outperformed 84% of stocks for price performance this past year. It's notable because market research shows that the best stocks often have an RS Rating north of 80 in the early stages of their moves.
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Monday.com Stock Ratings Generally Good
Last quarter small-cap Monday.com reported a 224% leap in earnings to 41 cents per share, reversing sharply from a 33-cent loss a year earlier. The gain came on 42% higher revenue of $175.7 million. Revenue the prior three stanzas grew 65%, 57% and 50%.
Among its other ratings Monday.com stock has an 82 Composite Rating out of 99. It also has an 81 Earnings Per Share Rating.
It's only yellow flag is its E Accumulation/Distribution Rating, showing that institutional investors like mutual funds and insurance company funds aren't on board yet. However, there is growing interest in Monday.com stock. The number of funds holding its stock rose from 161 in the December-ended quarter to 475 in September.
Near 90% Rise Since November
Monday.com launched its IPO in June 2021. Its stock fell to a 73.58 low on Nov. 9, 2022, as the bear market was ending. From there it rose to 139.49 Tuesday, up 0.5% for the day and nearly 90% up from the November low.
Monday.com stock earns the No. 30 rank among its peers in the 127-stock Computer Software-Enterprise industry group. UiPath and Workday are among the group's highest-rated stocks.
When researching the best stocks to buy and watch, relative price strength is a good indicator of strength.
Investor's Business Daily's exclusive Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.
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