Atlassian (TEAM) closed the most recent trading day at $320.59, moving +1.79% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.28%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.14%.
Coming into today, shares of the company had lost 10.46% in the past month. In that same time, the Computer and Technology sector lost 4.59%, while the S&P 500 gained 0.12%.
Wall Street will be looking for positivity from Atlassian as it approaches its next earnings report date. This is expected to be January 27, 2022. The company is expected to report EPS of $0.38, up 2.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $638.63 million, up 27.38% from the year-ago period.
TEAM’s full-year Zacks Consensus Estimates are calling for earnings of $1.58 per share and revenue of $2.59 billion. These results would represent year-over-year changes of +12.86% and +23.97%, respectively.
Any recent changes to analyst estimates for Atlassian should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Atlassian is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Atlassian has a Forward P/E ratio of 199.15 right now. This represents a premium compared to its industry’s average Forward P/E of 57.18.
We can also see that TEAM currently has a PEG ratio of 8.85. 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. TEAM’s industry had an average PEG ratio of 3.02 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 182, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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