MongoDB Sees Steady Gains Ahead of Earnings Report
On the latest trading day, MongoDB (MDB) closed at $271.85, marking a modest increase of +0.54% from the previous close. The stock outperformed the S&P 500, which rose 0.41%. In contrast, the Dow gained 0.69%, and the Nasdaq, which is heavily weighted in technology, experienced an increase of 0.8%.
Stock Performance and Trends in the Technology Sector
Over the past month, MongoDB’s stock has risen by 6.88% despite the Computer and Technology sector’s slight decline of 0.01% and the S&P 500’s drop of 0.97% during the same period.
Upcoming Earnings and Analyst Expectations
Investors are eagerly anticipating MongoDB’s upcoming financial results. The company is expected to report earnings of $0.69 per share, which would reflect a year-over-year decline of 28.13%. The Zacks Consensus Estimate also predicts revenues of $495.23 million, marking a 14.39% increase compared to the same quarter last year.
For the full year, the Zacks Consensus Estimates project MongoDB will earn $2.43 per share and generate $1.93 billion in revenue, translating to year-over-year changes of -27.03% in earnings and +14.48% in revenue, respectively.
Implications of Analyst Estimate Revisions
Recent adjustments to analyst estimates for MongoDB are crucial for investors. Significant changes can indicate shifts in business trends. Positive revisions often signal confidence in a company’s performance and potential profitability.
Our findings suggest a connection between these estimate revisions and stock price movements. Accordingly, Zacks has developed a ranking system that includes these changes to assess stock performance effectively.
Zacks Ranking and Market Valuation Metrics
The Zacks Rank, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has consistently shown an ability to predict stock performance. Stocks ranked #1 have generated an average annual return of +25% since 1988. Currently, MongoDB holds a Zacks Rank of #3 (Hold), with the Consensus EPS estimate rising by 2% over the past month.
Investors should be aware of MongoDB’s Forward P/E ratio, which stands at 111.38. This is significantly higher than the average Forward P/E of 30.5 within its industry.
Additionally, MongoDB has a PEG ratio of 10.71, which factors in anticipated earnings growth. In comparison, the Internet – Software industry has an average PEG ratio of 2.28. This industry falls under the broader Computer and Technology sector, which currently holds a Zacks Industry Rank of 83, placing it in the top 33% of over 250 industries analyzed.
The Zacks Industry Rank evaluates the strength of each industry by looking at the average Zacks Rank of its constituent stocks. Research indicates that industries in the top 50% tend to outperform those in the bottom half by a significant margin.
Investors can utilize Zacks.com to keep track of various stock-influencing metrics and updates in the upcoming trading sessions.
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