Atlassian Corporation PLC (TEAM) closed at $110.27 in the latest trading session, marking a -0.19% move from the prior day. This move lagged the S&P 500's daily gain of 0.5%. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 0.76%.
Prior to today's trading, shares of the company had gained 5.41% over the past month. This has outpaced the Computer and Technology sector's gain of 3.93% and the S&P 500's gain of 2.53% in that time.
Investors will be hoping for strength from TEAM as it approaches its next earnings release. On that day, TEAM is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 80%. Our most recent consensus estimate is calling for quarterly revenue of $304.09 million, up 35.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.81 per share and revenue of $1.20 billion, which would represent changes of +65.31% and +36.85%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TEAM. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. TEAM currently has a Zacks Rank of #3 (Hold).
Investors should also note TEAM's current valuation metrics, including its Forward P/E ratio of 135.7. For comparison, its industry has an average Forward P/E of 59.65, which means TEAM is trading at a premium to the group.
It is also worth noting that TEAM currently has a PEG ratio of 10.05. 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. Internet - Software stocks are, on average, holding a PEG ratio of 3.31 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 75, which puts 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.
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