Atlassian Corporation PLC, a team collaboration and productivity software provider, published its Q2 results last week and surpassed all expectations. The company is making good use of the recent trend of the cloud adoption responsible for maintaining quality, reliability and security of cloud offerings with developers. Analysts also believe that the $20 million IT operations and service management sector, currently dominated by ServiceNow Inc. (NOW), will soon be overcome by Atlassian.
TEAM’s Q2 earnings report witnessed an accelerated billing with an 49% billing growth, ahead of estimates by 10%. Billings benefited from early renewals of maintenance contracts ahead of the annual price increase, as well as a shift to multi-year contracts.
Despite the impressive performance, analysts note that shares are fairly valued due to the possible increased sales investment, and increased competition with ServiceNow as focus shifts to IT with unclear signs for collaborations beyond IT.
Other important achievements include Atlassian's 100,000 cloud customers, accounting for 75% of its total customers, its efforts to expand Opsgenie, and an impressive ~111% growth in the share price in 2018.
With an above-consensus FY2019 guidance, analysts have raised the price target from $108 to $118 for 2019.
The 50-day moving average for TEAM moved below the 200-day moving average on April 24, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
The Momentum Indicator moved below the 0 level on April 19, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on TEAM as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TEAM turned negative on April 26, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
TEAM moved below its 50-day moving average on April 15, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEAM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where TEAM's RSI Oscillator exited the oversold zone, of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 56 cases where TEAM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TEAM advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
TEAM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TEAM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TEAM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (55.556) is normal, around the industry mean (30.031). P/E Ratio (0.000) is within average values for comparable stocks, (155.935). Projected Growth (PEG Ratio) (2.505) is also within normal values, averaging (2.725). Dividend Yield (0.000) settles around the average of (0.081) among similar stocks. P/S Ratio (12.804) is also within normal values, averaging (55.589).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an enterprise software solutions provider
Industry PackagedSoftware