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Atlassian (TEAM) Stock Sinks As Market Gains: What You Should Know
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Atlassian (TEAM - Free Report) closed the most recent trading day at $280.13, moving -0.3% from the previous trading session. This move lagged the S&P 500's daily gain of 1.24%. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.15%.
Prior to today's trading, shares of the company had lost 11.85% over the past month. This has lagged the Computer and Technology sector's loss of 5.9% and the S&P 500's loss of 2.45% in that time.
Atlassian will be looking to display strength as it nears its next earnings release. On that day, Atlassian is projected to report earnings of $0.32 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $696.99 million, up 22.55% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.56 per share and revenue of $2.69 billion. These totals would mark changes of +11.43% and +28.57%, respectively, from last year.
Any recent changes to analyst estimates for Atlassian should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Atlassian currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Atlassian currently has a Forward P/E ratio of 180.39. Its industry sports an average Forward P/E of 46.12, 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 8.02. 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 industry currently had an average PEG ratio of 2.85 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 187, putting it in the bottom 27% 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) Stock Sinks As Market Gains: What You Should Know
Atlassian (TEAM - Free Report) closed the most recent trading day at $280.13, moving -0.3% from the previous trading session. This move lagged the S&P 500's daily gain of 1.24%. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.15%.
Prior to today's trading, shares of the company had lost 11.85% over the past month. This has lagged the Computer and Technology sector's loss of 5.9% and the S&P 500's loss of 2.45% in that time.
Atlassian will be looking to display strength as it nears its next earnings release. On that day, Atlassian is projected to report earnings of $0.32 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $696.99 million, up 22.55% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.56 per share and revenue of $2.69 billion. These totals would mark changes of +11.43% and +28.57%, respectively, from last year.
Any recent changes to analyst estimates for Atlassian should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Atlassian currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Atlassian currently has a Forward P/E ratio of 180.39. Its industry sports an average Forward P/E of 46.12, 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 8.02. 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 industry currently had an average PEG ratio of 2.85 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 187, putting it in the bottom 27% 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.