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Atlassian (TEAM) Gains But Lags Market: What You Should Know
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Atlassian (TEAM - Free Report) closed at $121.28 in the latest trading session, marking a +1.09% move from the prior day. The stock lagged the S&P 500's daily gain of 2.28%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 5.02%.
Heading into today, shares of the company had lost 11.6% over the past month, lagging the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 4.61% 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, our latest consensus estimate is calling for revenue of $843.02 million, up 22.44% from the prior-year quarter.
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 +23.05%, respectively, from the prior year.
Any recent changes to analyst estimates for Atlassian should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% higher. Atlassian is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Atlassian has a Forward P/E ratio of 89.33 right now. This valuation marks a premium compared to its industry's average Forward P/E of 40.15.
Investors should also note that TEAM has a PEG ratio of 4.47 right now. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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) Gains But Lags Market: What You Should Know
Atlassian (TEAM - Free Report) closed at $121.28 in the latest trading session, marking a +1.09% move from the prior day. The stock lagged the S&P 500's daily gain of 2.28%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 5.02%.
Heading into today, shares of the company had lost 11.6% over the past month, lagging the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 4.61% 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, our latest consensus estimate is calling for revenue of $843.02 million, up 22.44% from the prior-year quarter.
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 +23.05%, respectively, from the prior year.
Any recent changes to analyst estimates for Atlassian should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% higher. Atlassian is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Atlassian has a Forward P/E ratio of 89.33 right now. This valuation marks a premium compared to its industry's average Forward P/E of 40.15.
Investors should also note that TEAM has a PEG ratio of 4.47 right now. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.