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

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The latest trading session saw Atlassian (TEAM - Free Report) ending at $198.55, denoting a +0.98% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq appreciated by 0.03%.

The company's stock has dropped by 5.83% in the past month, falling short of the Computer and Technology sector's gain of 4.26% and the S&P 500's gain of 2.57%.

The investment community will be paying close attention to the earnings performance of Atlassian in its upcoming release. The company is slated to reveal its earnings on April 25, 2024. The company is predicted to post an EPS of $0.61, indicating a 12.96% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.1 billion, indicating a 19.73% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.57 per share and revenue of $4.23 billion. These totals would mark changes of +33.85% and +19.78%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Atlassian. Such recent modifications usually signify the changing landscape 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.42% upward. At present, Atlassian boasts a Zacks Rank of #4 (Sell).

Investors should also note Atlassian's current valuation metrics, including its Forward P/E ratio of 76.6. This valuation marks a premium compared to its industry's average Forward P/E of 28.21.

Meanwhile, TEAM's PEG ratio is currently 3.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TEAM's industry had an average PEG ratio of 1.86 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank is ordered 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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