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Atlassian (TEAM) Gains As Market Dips: What You Should Know

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Atlassian (TEAM - Free Report) closed at $185.40 in the latest trading session, marking a +1.31% move from the prior day. This change outpaced the S&P 500's 0.13% loss on the day. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.14%.

Heading into today, shares of the company had gained 11.47% over the past month, outpacing the Computer and Technology sector's loss of 2.49% and the S&P 500's loss of 3.32% in that time.

Atlassian will be looking to display strength as it nears its next earnings release. In that report, analysts expect Atlassian to post earnings of $0.26 per share. This would mark year-over-year growth of 8.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $717.78 million, up 28.28% from the year-ago period.

TEAM's full-year Zacks Consensus Estimates are calling for earnings of $1.69 per share and revenue of $2.76 billion. These results would represent year-over-year changes of +20.71% and +32.22%, respectively.

Investors should also note any recent changes to analyst estimates for Atlassian. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Atlassian currently has a Zacks Rank of #3 (Hold).

Investors should also note Atlassian's current valuation metrics, including its Forward P/E ratio of 108.28. Its industry sports an average Forward P/E of 40.05, 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 4.81. 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 2.23 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 161, putting it in the bottom 37% 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.

To follow TEAM in the coming trading sessions, be sure to utilize Zacks.com.


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