Atlassian (TEAM) Laps the Stock Market: Here's Why
In the latest market close, Atlassian (TEAM) reached $202, with a +1.72% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.46%. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.7%.
Coming into today, shares of the company had gained 13.45% in the past month. In that same time, the Computer and Technology sector gained 4.16%, while the S&P 500 gained 4.85%.
The upcoming earnings release of Atlassian will be of great interest to investors. It is anticipated that the company will report an EPS of $0.61, marking a 35.56% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.02 billion, reflecting a 16.81% rise from the equivalent quarter last year.
TEAM's full-year Zacks Consensus Estimates are calling for earnings of $2.39 per share and revenue of $4.13 billion. These results would represent year-over-year changes of +24.48% and +16.85%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Atlassian. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 5.88% higher. As of now, Atlassian holds a Zacks Rank of #3 (Hold).
Digging into valuation, Atlassian currently has a Forward P/E ratio of 82.95. This valuation marks a premium compared to its industry's average Forward P/E of 37.51.
It's also important to note that TEAM currently trades at a PEG ratio of 4.15. 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 average PEG ratio for the Internet - Software industry stood at 1.73 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 29, this industry ranks in the top 12% of all industries, numbering over 250.
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.
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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Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report
