Atlassian (TEAM) is a Top-Ranked Momentum Stock: Should You Buy?

Core Insights - The Zacks Premium service provides tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [3] Zacks Style Scores Overview - The Zacks Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score capitalizes on price trends and earnings outlook changes [6] - VGM Score combines all three styles to provide a comprehensive stock rating [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investment decisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down choices [9] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks, even with good Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [11] Company Spotlight: Atlassian - Atlassian is recognized as a leader in enterprise collaboration and workflow software, offering cloud-based solutions for organizational management [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong potential [12] - Atlassian's stock has shown a 17.2% increase over the past four weeks, supported by an upward revision in earnings estimates for fiscal 2026 [13] - The Zacks Consensus Estimate for Atlassian has risen by $0.12 to $4.28 per share, with an average earnings surprise of +20.7% [13]