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

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Atlassian Corporation PLC (TEAM - Free Report) closed at $175.20 in the latest trading session, marking a +0.54% move from the prior day. The stock lagged the S&P 500's daily gain of 1.2%. At the same time, the Dow added 1.7%, and the tech-heavy Nasdaq gained 1.13%.

Investors will be hoping for strength from TEAM as it approaches its next earnings release. In that report, analysts expect TEAM to post earnings of $0.20 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $409.09 million, up 22.27% from the year-ago period.

TEAM's full-year Zacks Consensus Estimates are calling for earnings of $1.09 per share and revenue of $1.59 billion. These results would represent year-over-year changes of +26.74% and +31.64%, respectively.

Investors should also note any recent changes to analyst estimates for TEAM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. TEAM currently has a Zacks Rank of #2 (Buy).

In terms of valuation, TEAM is currently trading at a Forward P/E ratio of 159.58. This represents a premium compared to its industry's average Forward P/E of 51.23.

It is also worth noting that TEAM currently has a PEG ratio of 7.05. 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 3.56 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 25, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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