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Atlassian (TEAM) Gains As Market Dips: What You Should Know
Atlassian (TEAM - Free Report) closed at $158.25 in the latest trading session, marking a +0.57% move from the prior day. This change outpaced the S&P 500's 1.1% loss on the day. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 3.27%.
Prior to today's trading, shares of the company had lost 9.91% over the past month. This has lagged the Computer and Technology sector's gain of 1.45% and the S&P 500's loss of 3.02% in that time.
Wall Street will be looking for positivity from Atlassian as it approaches its next earnings report date. In that report, analysts expect Atlassian to post earnings of $0.36 per share. This would mark a year-over-year decline of 23.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $898.71 million, up 21.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.51 per share and revenue of $3.49 billion, which would represent changes of -10.65% and +24.63%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Atlassian. These revisions help to show the ever-changing nature of near-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. 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.
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 has moved 4.23% higher. Atlassian is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Atlassian is holding a Forward P/E ratio of 103.93. For comparison, its industry has an average Forward P/E of 40.65, which means Atlassian is trading at a premium to the group.
Meanwhile, TEAM's PEG ratio is currently 5.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.