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Atlassian (TEAM) Gains But Lags Market: What You Should Know

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In the latest trading session, Atlassian (TEAM - Free Report) closed at $226.58, marking a +0.11% move from the previous day. This change lagged the S&P 500's 0.93% gain on the day.

Coming into today, shares of the company had gained 2.92% in the past month. In that same time, the Computer and Technology sector gained 8.56%, while the S&P 500 gained 5.84%.

Wall Street will be looking for positivity from TEAM as it approaches its next earnings report date. This is expected to be April 29, 2021. In that report, analysts expect TEAM to post earnings of $0.29 per share. This would mark year-over-year growth of 16%. Our most recent consensus estimate is calling for quarterly revenue of $540.8 million, up 31.39% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.19 per share and revenue of $1.99 billion, which would represent changes of +3.48% and +23.16%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TEAM. These recent revisions tend to reflect the evolving nature of short-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. 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.

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 393.33% higher. TEAM is currently a Zacks Rank #2 (Buy).

Investors should also note TEAM's current valuation metrics, including its Forward P/E ratio of 192.26. This represents a premium compared to its industry's average Forward P/E of 76.52.

Investors should also note that TEAM has a PEG ratio of 8.54 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. The Internet - Software industry currently had an average PEG ratio of 4.07 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 185, putting it in the bottom 28% 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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