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

Zacks Equity Research

Atlassian Corporation PLC (TEAM) closed at $130.84 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's 0.58% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.48%.

Heading into today, shares of the company had gained 3.82% over the past month, outpacing the Computer and Technology sector's gain of 3.51% and the S&P 500's gain of 3.62% in that time.

TEAM will be looking to display strength as it nears its next earnings release. In that report, analysts expect TEAM to post earnings of $0.16 per share. This would mark year-over-year growth of 23.08%. Our most recent consensus estimate is calling for quarterly revenue of $330.53 million, up 35.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.82 per share and revenue of $1.21 billion, which would represent changes of +67.35% and +38%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TEAM. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TEAM is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, TEAM currently has a Forward P/E ratio of 160.46. This represents a premium compared to its industry's average Forward P/E of 63.24.

It is also worth noting that TEAM currently has a PEG ratio of 8.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 2.8 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% 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.

To follow TEAM in the coming trading sessions, be sure to utilize Zacks.com.


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