If you're trying to build your earnings season watch list by looking for stocks setting up in a base ahead of their next quarterly report, here's one that fits the bill: IBD 50 member Atlassian ( TEAM ). It's expected to release its latest numbers around Jan. 17 and is currently about 4% below a 53.55 entry. The entry is based on a second-stage cup without handle .
[ibd-display-video id=2360792 width=50 float=left autostart=true] Keep in mind that jumping into a stock right as it gets ready to report means you likely won't have enough time to build a profit cushion before the release. That leaves you exposed to a sudden and perhaps sharp drop if the company misses analyst estimates or provides weak guidance. You can reduce your risk by waiting to see how the company reports and how the market reacts. Using an options strategy during earnings season is another way to put yourself in a position to profit, while minimizing the potential downside.
See How IBD Helps You Make More Money In Stocks
EPS growth decreased in the company's latest report from 29% to 20%, but revenue rose from 37% to 42%.
Consensus analyst estimates call for EPS growth of 33% for the quarter, and 31% growth for the full year. Annual EPS estimates were recently revised upward.
Atlassian has a 98 Composite Rating and earns the No. 1 rank among its peers in the Computer Software-Special Enterprise industry group. VMware ( VMW ) and RealPage ( RP ) are also among the group's highest-rated stocks.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
