Atlassian Corporation PLC (TEAM) closed at $128.80 in the latest trading session, marking a -0.1% move from the prior day. This change was narrower than the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq lost 0.38%.
Prior to today's trading, shares of the company had gained 4.17% over the past month. This has outpaced the Computer and Technology sector's loss of 1.9% and the S&P 500's gain of 0.33% in that time.
Investors will be hoping for strength from TEAM as it approaches its nex t earnings release. The company is expected to report EPS of $0.16, up 23.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $330.53 million, up 35.59% from the year-ago period.
TEAM's full-year Zacks Consensus Estimates are calling for earnings of $0.82 per share and revenue of $1.21 billion. These results would represent year-over-year changes of +67.35% and +38%, respectively.
Investors should also note any recent changes to analyst estimates for TEAM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TEAM is currently a Zacks Rank #3 (Hold).
Looking at its valuation, TEAM is holding a Forward P/E ratio of 157.87. This valuation marks a premium compared to its industry's average Forward P/E of 59.02.
It is also worth noting that TEAM currently has a PEG ratio of 8.63. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.59 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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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