Atlassian Corporation PLC (TEAM) closed the most recent trading day at $141.05, moving -1.67% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.6%. At the same time, the Dow lost 2.37%, and the tech-heavy Nasdaq lost 3%.
Coming into today, shares of the company had gained 6.64% in the past month. In that same time, the Computer and Technology sector lost 2.19%, while the S&P 500 lost 1.84%.
Investors will be hoping for strength from TEAM as it approaches its next earnings release. In that report, analysts expect TEAM to post earnings of $0.24 per share. This would mark year-over-year growth of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $351.49 million, up 31.5% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.01 per share and revenue of $1.55 billion. These totals would mark changes of +17.44% and +28.35%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for TEAM. Recent revisions tend to reflect the latest 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. 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. The Zacks Consensus EPS estimate has moved 20.05% higher within the past month. TEAM is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that TEAM has a Forward P/E ratio of 141.79 right now. For comparison, its industry has an average Forward P/E of 50.54, which means TEAM is trading at a premium to the group.
Also, we should mention that TEAM has a PEG ratio of 9.62. 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. The Internet - Software was holding an average PEG ratio of 2.94 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% 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.
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