monday.com
monday.com
MND
€5.67
2.33%
57%
IBD Stock Analysis
- Inventory-forming basis in addition to a previous
- MNDY has 249 official points of sale
- Shares trading at 239.54
Ranking of industry groups
Emerging pattern
Consolidation
* Not real-time data. All data shown was captured at 12:05PM EDT on 07/05/2024.
Monday.com (MNDY) is the IBD stock of the day as the maker of project management software lays new ground. Shares are up 31% in 2024, outperforming most software companies.
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Banking giants start earnings season next week
On the stock market today, Monday.com rose 2.3% to close at 248.98. Meanwhile, the iShares Expanded Tech-Software Sector (IGV) exchange traded fund, a sector index, is up 9% this year, thanks to a rally in June.
Monday.com stock’s relative strength line is close to its 52-week highs.
Monday.com forges a new mini double-bottom base right next to a previous consolidation base. The stock’s entry point also moves to 239.54 from its previous consolidation entry of 239.22 on MarketSurge.
Founded in 2012, Monday.com competes with Asana (ASAN-), Smartsheet (SMAR) and Atlassian (TEAM), among others.
Building a software platform
William Blair analyst Arjun Bhatia says Monday.com has evolved from a maker of project management software to a platform company. While Monday.com’s software is most often used in project management, it is also used for customer relationship management, workflow automation, human resources, marketing and other business purposes.
“Increasingly, we’re seeing investors recognize Monday for its breadth and true platform potential, which places it in a unique breed of software companies,” he said in a recent report. “The first product Monday built on its platform was project management, which still represents more than 90% of the company’s annual recurring revenue.”
“It recently launched Monday CRM (customer relationship management) and Monday Dev, and later this year it will launch Monday Service,” Bhatia continued. “We expect to see more products built on the platform in the future, which we believe can be done relatively easily and with minimal R&D resources.”
In 2017, the software maker changed its name from Dapulse to Monday.com. Monday.com raised $574 million in its IPO in June 2021, with Monday’s shares trading at 155.
Monday.com Stocks: Technical Ratings
According to IBD Stock Checkup, Monday.com shares have an excellent IBD Composite Rating of 97.
IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Monday.com shares have an Accumulation/Distribution Rating of A-minus. This rating analyzes price and volume changes in a stock over the past 13 trading weeks. The current rating for Monday.com shares indicates that more funds are buying than selling.
The rating, on a scale of A+ to E, measures institutional buying and selling in a stock. A+ represents heavy institutional buying; E represents heavy selling. Consider a C grade neutral.
Monday.com Earnings Top Views
For the quarter ended March 31, Monday.com reported earnings of 61 cents per share on an adjusted basis, up 335% from a year earlier. Revenue also rose 34% to $216.9 million.
Analysts had forecast adjusted earnings of 40 cents per share on revenue of $210.5 million. For the current quarter ending in June, Monday.com forecast revenue of $228 million versus estimates of $225.2 million.
With “no-code” software tools, customers build applications that are tailored to their needs. Furthermore, customers create custom apps using pre-built, graphical, drag-and-drop programming tools instead of coding language.
Monday.com Stock: Building the Brand
Additionally, Israel-based Monday.com enables customers to integrate third-party software into custom app development. Monday.com integrates third-party software Sales team (CRM system) HubSpot (HUBS) and many others.
Furthermore, Monday.com continues to build brand awareness against rivals. Its marketing strategy includes Facebook and Instagram, internet search engine optimization, online video advertising on YouTube, podcasts and regular billboard campaigns.
Monday’s marketing is focused on attracting potential customers to its website, where they can download the software for a trial period. Furthermore, Monday.com generates most of its revenue from subscriptions.
The self-service business model for Monday.com stocks has worked well with small and mid-sized companies. Monday.com also launched a direct sales strategy in mid-2018, expanding sales recruiting to expand into the enterprise market.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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