Atlassian (TEAM) Laps the Stock Market: Here's Why
In the latest trading session, Atlassian (TEAM) closed at $233.07, marking a +1.97% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.59%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.66%.
Shares of the company witnessed a gain of 22.82% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.11% and the S&P 500's gain of 5.16%.
Investors will be eagerly watching for the performance of Atlassian in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.61, signifying a 35.56% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.02 billion, indicating a 16.81% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.39 per share and a revenue of $4.13 billion, indicating changes of +24.48% and +16.85%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Atlassian. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.97% lower. Atlassian is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Atlassian is currently exchanging hands at a Forward P/E ratio of 95.47. This represents a premium compared to its industry's average Forward P/E of 39.68.
We can additionally observe that TEAM currently boasts a PEG ratio of 4.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 1.8 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 28, positioning it in the top 12% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report
