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Atlassian Corporation PLC (TEAM) Outpaces Stock Market Gains: What You Should Know

Atlassian Corporation PLC (TEAM) closed at $172.86 in the latest trading session, marking a +0.95% move from the prior day. This move outpaced the S&P 500's daily gain of 0.29%. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, added 0.28%.

Prior to today's trading, shares of the company had lost 3.6% over the past month. This has lagged the Computer and Technology sector's gain of 4.98% and the S&P 500's gain of 2.96% in that time.

Wall Street will be looking for positivity from TEAM as it approaches its next earnings report date. This is expected to be July 30, 2020. The company is expected to report EPS of $0.20, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $408.86 million, up 22.2% from the year-ago period.

It is also important to note the recent changes to analyst estimates for TEAM. These revisions help to show the ever-changing nature of near-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. 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.

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 has moved 19.23% lower within the past month. TEAM currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that TEAM has a Forward P/E ratio of 132.74 right now. This valuation marks a premium compared to its industry's average Forward P/E of 69.19.

Meanwhile, TEAM's PEG ratio is currently 5.87. 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 3.67 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 75, putting it in the top 30% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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