Yahoo Finance Atlassian (TEAM) Gains As Market Dips: What You Should Know
Atlassian (TEAM) closed at $141 in the latest trading session, marking a +0.67% move from the prior day. This change outpaced the S&P 500's 0.12% loss on the day. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the company had lost 19.58% over the past month, lagging the Computer and Technology sector's gain of 8.67% and the S&P 500's gain of 5.93% in that time.
Investors will be hoping for strength from Atlassian as it approaches its next earnings release. In that report, analysts expect Atlassian to post earnings of $0.30 per share. This would mark a year-over-year decline of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $843.91 million, up 22.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $3.45 billion, which would represent changes of -20.71% and +23.17%, respectively, from the prior year.
Any recent changes to analyst estimates for Atlassian should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.34% higher. Atlassian currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Atlassian currently has a Forward P/E ratio of 104.7. For comparison, its industry has an average Forward P/E of 46.03, which means Atlassian is trading at a premium to the group.
Also, we should mention that TEAM has a PEG ratio of 4.65. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.34 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% 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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Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report
