Atlassian (TEAM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Atlassian (TEAM) closed at $294.13, marking a +1.63% move from the previous day. This move outpaced the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 0.32%.
Prior to today's trading, shares of the company had gained 2.99% over the past month. This has lagged the Computer and Technology sector's gain of 5.48% and the S&P 500's gain of 5.65% in that time.
Wall Street will be looking for positivity from Atlassian as it approaches its next earnings report date. On that day, Atlassian is projected to report earnings of $0.32 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $696.99 million, up 22.55% from the prior-year quarter.
TEAM's full-year Zacks Consensus Estimates are calling for earnings of $1.56 per share and revenue of $2.69 billion. These results would represent year-over-year changes of +11.43% and +28.57%, respectively.
It is also important to note the recent changes to analyst estimates for Atlassian. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Atlassian currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Atlassian currently has a Forward P/E ratio of 185.82. For comparison, its industry has an average Forward P/E of 47.87, which means Atlassian is trading at a premium to the group.
It is also worth noting that TEAM currently has a PEG ratio of 8.26. 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 industry currently had an average PEG ratio of 2.98 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 200, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report
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