Atlassian (US:TEAM) ZACKSยท2025-02-11 15:16Company Performance - Atlassian's shares have increased by 36.7% over the past month, reaching a new 52-week high of $326 [1] - The stock has gained 32.7% since the beginning of the year, outperforming the Zacks Computer and Technology sector's 2.2% and the Zacks Internet - Software industry's 18.4% [1] Earnings and Revenue Expectations - Atlassian has consistently exceeded earnings estimates, reporting an EPS of $0.96 against a consensus estimate of $0.73 in its last earnings report [2] - For the current fiscal year, Atlassian is projected to achieve earnings of $3.45 per share on revenues of $5.17 billion, reflecting a 17.75% increase in EPS and an 18.59% increase in revenues [3] - The next fiscal year is expected to see earnings of $4.17 per share on $6.16 billion in revenues, indicating year-over-year changes of 20.99% and 19.12%, respectively [3] Valuation Metrics - Atlassian's current trading metrics show a P/E ratio of 93.7X for the current fiscal year EPS estimates, significantly higher than the peer industry average of 31X [7] - The stock trades at a trailing cash flow multiple of 5X compared to the peer group's average of 27.2X, and has a PEG ratio of 4.68 [7] - The company has a Value Score of F, while its Growth and Momentum Scores are both A, resulting in a VGM Score of B [6] Zacks Rank and Investment Potential - Atlassian holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, indicating potential for further stock price appreciation [8] - The recommendation for investors is to consider stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, which Atlassian meets [8] Industry Context - The Internet - Software industry is performing well, ranking in the top 30% of all industries, providing favorable conditions for Atlassian and its peers [11]