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Atlassian Corporation PLC (TEAM) Gains As Market Dips: What You Should Know

Zacks Equity Research

Atlassian Corporation PLC (TEAM) closed the most recent trading day at $129.96, moving +0.74% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.51%. At the same time, the Dow lost 1.69%, and the tech-heavy Nasdaq lost 1.53%.

Coming into today, shares of the company had lost 15.24% in the past month. In that same time, the Computer and Technology sector lost 14.82%, while the S&P 500 lost 18.13%.

Investors will be hoping for strength from TEAM as it approaches its next earnings release. The company is expected to report EPS of $0.20, down 4.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $397.16 million, up 28.42% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.07 per share and revenue of $1.59 billion, which would represent changes of +24.42% and +31.05%, respectively, from the prior year.

Any recent changes to analyst estimates for TEAM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.96% lower. TEAM is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that TEAM has a Forward P/E ratio of 120.57 right now. This represents a premium compared to its industry's average Forward P/E of 36.82.

Also, we should mention that TEAM has a PEG ratio of 5.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TEAM's industry had an average PEG ratio of 2.18 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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