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Atlassian (TEAM) Outpaces Stock Market Gains: What You Should Know
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Atlassian (TEAM - Free Report) closed at $388.05 in the latest trading session, marking a +1.95% move from the prior day. This move outpaced the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.38%.
Coming into today, shares of the company had lost 2.28% in the past month. In that same time, the Computer and Technology sector lost 3.79%, while the S&P 500 lost 0.91%.
Atlassian will be looking to display strength as it nears its next earnings release. On that day, Atlassian is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 2.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $638.58 million, up 27.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.57 per share and revenue of $2.59 billion. These totals would mark changes of +12.14% and +23.81%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Atlassian. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 #5 (Strong Sell).
In terms of valuation, Atlassian is currently trading at a Forward P/E ratio of 242.44. For comparison, its industry has an average Forward P/E of 63.82, which means Atlassian is trading at a premium to the group.
Meanwhile, TEAM's PEG ratio is currently 10.78. 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. TEAM's industry had an average PEG ratio of 3.75 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% 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 (TEAM) Outpaces Stock Market Gains: What You Should Know
Atlassian (TEAM - Free Report) closed at $388.05 in the latest trading session, marking a +1.95% move from the prior day. This move outpaced the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.38%.
Coming into today, shares of the company had lost 2.28% in the past month. In that same time, the Computer and Technology sector lost 3.79%, while the S&P 500 lost 0.91%.
Atlassian will be looking to display strength as it nears its next earnings release. On that day, Atlassian is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 2.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $638.58 million, up 27.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.57 per share and revenue of $2.59 billion. These totals would mark changes of +12.14% and +23.81%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Atlassian. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 #5 (Strong Sell).
In terms of valuation, Atlassian is currently trading at a Forward P/E ratio of 242.44. For comparison, its industry has an average Forward P/E of 63.82, which means Atlassian is trading at a premium to the group.
Meanwhile, TEAM's PEG ratio is currently 10.78. 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. TEAM's industry had an average PEG ratio of 3.75 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% 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.