Is monday.com (MNDY) A Bargain As Earnings Estimate Revisions Lift Sentiment?

monday.com (MNDY) attracted renewed attention after Zacks assigned the stock a Rank #1 rating, reflecting recent upward revisions in earnings estimates ahead of the company’s forthcoming results.

Recent trading paints a mixed picture. monday.com’s share price has slipped about 8.3% over the past 30 days and is down roughly 41.8% year to date, while the 1 year total shareholder return has fallen about 54.7%. Short term momentum has picked up slightly, but the longer term trend remains weak.

Scan for other software names where analysts are also turning more optimistic by reviewing the hand picked 29 high quality undervalued stocks that pair stronger estimate trends with solid fundamentals.

monday.com is trading well below where many analysts now peg fair value after a steep slide this year. As the valuation section begins, the key question is whether the potential recovery still lies ahead or is already largely in the rearview mirror.

Most Popular Narrative: 23% Undervalued

Based on the most followed narrative, monday.com screens as undervalued, with a fair value estimate of $108.87 against a last close of $83.51. This puts the focus firmly on how the business turns its AI and enterprise push into sustained earnings.

Rapid integration of generative AI and low code or no code capabilities, now reinforced by the monday AI work platform and mondayDB 3.0, points to deeper automation and customization that can support higher ARPU and stronger operating margins as AI monetization scales.

See why 75 investors see monday.com as 23% undervalued.

Result: Fair Value of $108.87 (UNDERVALUED)

Still, softer Q3 2026 guidance and easing net dollar retention could pressure monday.com if growth expectations remain out of sync with customer spending patterns.

Find out about the key risks to this monday.com narrative.

Next Steps

Mixed signals on monday.com’s outlook are clear, with earnings potential and business quality pulling against the concerns flagged by recent guidance and retention trends. If you want to move quickly and base your judgement on more than headlines, review the full breakdown of 4 key rewards and 1 important warning sign.

Looking for more investment ideas beyond monday.com?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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