MONDAY.COM LTD (NASDAQ:MNDY) – A High-Growth Momentum Stock with Strong Technical Setup

MONDAY.COM LTD (NASDAQ:MNDY) stands out as a high-growth momentum candidate with a solid technical setup. The company, which provides a cloud-based visual work operating system, has demonstrated strong earnings and revenue growth while also presenting a favorable chart pattern for potential breakout traders.

Fundamental Strengths Supporting Growth Momentum

• Earnings Growth: MNDY reported an 80.3% year-over-year EPS growth in the most recent quarter, following a 66.2% increase in the prior quarter. Over the past year, EPS growth stands at 71.9%.
• Revenue Expansion: Quarterly sales grew by 30.1%, with full-year revenue increasing by 33.2%. The company has consistently beaten revenue estimates in three of the last four quarters.
• Profit Margins: The latest quarterly profit margin improved to 9.7%, up from 8.6% in the previous quarter, indicating expanding profitability.
• Free Cash Flow Growth: Free cash flow surged by 397.4% over the past year, reinforcing financial strength.
• Analyst Revisions: EPS and revenue estimates for the next year have been revised upward by 10.7%, reflecting improving sentiment.

Technical Strength and Setup Quality

• Technical Rating (10/10): MNDY scores a perfect technical rating, supported by strong long-term and short-term uptrends. The stock is trading near the upper end of its 52-week range.
• Setup Rating (7/10): The stock is consolidating within a recent range of $253.75 to $303.00, presenting a potential breakout opportunity. A clear support zone exists around $273.30, providing a logical stop-loss level.
• Relative Strength: MNDY outperforms 79% of stocks over the past year, indicating strong market leadership.

For a deeper look at the technical structure, review the full technical report.

Our High Growth Momentum Breakout Setups Screen identifies more stocks with similar growth and technical characteristics.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.