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

Atlassian (TEAM) closed the most recent trading day at $227.19, moving +1.63% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.54%.

Heading into today, shares of the company had gained 16.57% over the past month, outpacing the Computer and Technology sector's gain of 4.87% and the S&P 500's gain of 3.5% in that time.

Wall Street will be looking for positivity from TEAM as it approaches its next earnings report date. In that report, analysts expect TEAM to post earnings of $0.31 per share. This would mark a year-over-year decline of 16.22%. Meanwhile, our latest consensus estimate is calling for revenue of $469.74 million, up 14.93% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.09 per share and revenue of $1.88 billion, which would represent changes of -5.22% and +16.56%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TEAM. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Within the past 30 days, our consensus EPS projection has moved 28.43% lower. TEAM currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, TEAM is holding a Forward P/E ratio of 205.08. For comparison, its industry has an average Forward P/E of 70.38, which means TEAM is trading at a premium to the group.

Investors should also note that TEAM has a PEG ratio of 8.35 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. TEAM's industry had an average PEG ratio of 5.6 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 177, putting it in the bottom 31% 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.

To follow TEAM in the coming trading sessions, be sure to utilize Zacks.com.


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