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Atlassian (TEAM) Stock Moves -1.23%: What You Should Know

·3 min read

In the latest trading session, Atlassian (TEAM) closed at $232.30, marking a -1.23% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.71%. Elsewhere, the Dow lost 1.7%, while the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the company had lost 8.94% in the past month. In that same time, the Computer and Technology sector lost 12.12%, while the S&P 500 lost 8.68%.

Investors will be hoping for strength from Atlassian as it approaches its next earnings release. The company is expected to report EPS of $0.38, down 17.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $801.55 million, up 30.54% from the prior-year quarter.

TEAM's full-year Zacks Consensus Estimates are calling for earnings of $1.54 per share and revenue of $3.56 billion. These results would represent year-over-year changes of -8.88% and +27.06%, respectively.

Investors should also note any recent changes to analyst estimates for Atlassian. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Atlassian's current valuation metrics, including its Forward P/E ratio of 153.05. Its industry sports an average Forward P/E of 42.78, so we one might conclude that Atlassian is trading at a premium comparatively.

It is also worth noting that TEAM currently has a PEG ratio of 7.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.41 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% of all 250+ industries.

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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