In the latest trading session, Atlassian Corporation PLC (TEAM) closed at $166.64, marking a -0.72% move from the previous day. This change lagged the S&P 500’s 0.34% gain on the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 0.42%.
Heading into today, shares of the company had lost 11.02% over the past month, lagging the Computer and Technology sector’s gain of 4.96% and the S&P 500’s gain of 4.3% in that time.
Wall Street will be looking for positivity from TEAM as it approaches its next earnings report date. The company is expected to report EPS of $0.27, down 3.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $438.98 million, up 20.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.14 per share and revenue of $1.92 billion. These totals would mark changes of -0.87% and +18.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for TEAM. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 39.13% lower within the past month. TEAM is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, TEAM currently has a Forward P/E ratio of 146.65. Its industry sports an average Forward P/E of 90.06, so we one might conclude that TEAM is trading at a premium comparatively.
Also, we should mention that TEAM has a PEG ratio of 5.92. 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 4.86 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.