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Atlassian (TEAM) Surges 3.1%: Is This an Indication of Further Gains?

Zacks Equity Research
·2-min read

Atlassian TEAM shares rallied 3.1% in the last trading session to close at $162.46. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.6% loss over the past four weeks.

Atlassian’s stock appreciated on continued optimism surrounding the demand for remote working tools amid growing hybrid working trends across the world. Improvement in product quality and performance, multiple product launches, transparent pricing and the unique sales strategy is a positive. The expansion of its product portfolio through acquisitions with the likes of Percept.AI, ThinkTilt and Chartio is expected to accelerate growth momentum.

This company is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of +3.5%. Revenues are expected to be $1.13 billion, up 20.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

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For Atlassian, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TEAM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Atlassian is a member of the Zacks Internet - Software industry. One other stock in the same industry, Dayforce DAY, finished the last trading session 0.6% higher at $50.17. DAY has returned -18% over the past month.

For Dayforce , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37. This represents a change of +15.6% from what the company reported a year ago. Dayforce currently has a Zacks Rank of #3 (Hold).

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Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report

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Zacks Investment Research