This story originally appeared on Zacks
Atlassian TEAM stock rose 3.1% in the last trading session to close at $312.98. This move can be attributed to the remarkable volume with more shares traded than in the regular session. This compares to a share loss of 18.5% over the past four weeks.
Atlassian stock appreciated the continued optimism surrounding the demand for remote work tools amid the coronavirus-led social distancing measures adopted by governments around the world.
Due to heightened fears of the coronavirus amid the emergence of the most contagious variant of Omicron, organizations around the world are advising employees to work from home unless their on-site role is essential to the company. With the increasing demand for off-site work, companies that offer remote work software and services like Atlassian are expected to grow exponentially.
The improvement in product quality and performance, multiple product launches, transparent pricing and unique sales strategy is a positive. Expanding its product portfolio through acquisitions with companies such as ThinkTilt, Chartio, Halp and Mindville is expected to accelerate growth momentum.
This company is expected to report quarterly earnings of $0.38 per share in its upcoming report, which represents a +2.7% year-over-year change. Revenue is expected to be $638.63 million, up 27.4% from last year’s quarter.
While earnings and revenue growth expectations are important in assessing potential strength in a stock, empirical research shows a strong relationship between trends in earnings estimates reviews and near-term stock price movements.
For Atlassian, the agreed EPS estimate for the quarter was revised 14.3% lower over the past 30 days to the current level. A negative trend in earnings estimates revisions does not usually translate into an increase in prices. So, be sure to keep an eye on TEAM going forward to see if this latest jump can turn into more power down the road.
The stock currently has a Zacks 3 (Hold) rating. You can see the full list of Zacks #1 ranked stocks (strong buy) here >>>>
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Atlassian Corporation PLC (TEAM): Free Stock Analysis Report
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