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Atlassian Corporation PLC (TEAM) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, Atlassian Corporation PLC (TEAM) closed at $139.16, marking a +0.96% move from the previous day. The stock lagged the S&P 500's daily gain of 1.15%. At the same time, the Dow added 2.39%, and the tech-heavy Nasdaq lost 0.45%.

Coming into today, shares of the company had lost 4.35% in the past month. In that same time, the Computer and Technology sector lost 18.62%, while the S&P 500 lost 24.07%.

TEAM will be looking to display strength as it nears its next earnings release. In that report, analysts expect TEAM to post earnings of $0.20 per share. This would mark a year-over-year decline of 4.76%. Meanwhile, our latest consensus estimate is calling for revenue of $397.42 million, up 28.5% from the prior-year quarter.

TEAM's full-year Zacks Consensus Estimates are calling for earnings of $1.07 per share and revenue of $1.60 billion. These results would represent year-over-year changes of +24.42% and +31.84%, respectively.

Investors might also notice recent changes to analyst estimates for TEAM. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 128.72 right now. This valuation marks a premium compared to its industry's average Forward P/E of 31.39.

We can also see that TEAM currently has a PEG ratio of 5.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently 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 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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