Atlassian’s (TEAM, $92.26) Outstanding Q2 Results Continue to Impress Analysts
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.
Momentum Indicator for TEAM turns positive, indicating new upward trend
TEAM saw its Momentum Indicator move above the 0 level on October 04, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 83 similar instances where the indicator turned positive. In of the 83 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for TEAM just turned positive on October 04, 2024. Looking at past instances where TEAM's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
TEAM moved above its 50-day moving average on October 01, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TEAM crossed bullishly above the 50-day moving average on September 20, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. 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 331 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
TEAM broke above its upper Bollinger Band on October 09, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 63%.
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TEAM’s price grows at a higher 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 88, 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 (30.829). P/E Ratio (0.000) is within average values for comparable stocks, (161.895). Projected Growth (PEG Ratio) (2.505) is also within normal values, averaging (2.738). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (12.804) is also within normal values, averaging (56.744).
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an enterprise software solutions provider
Industry PackagedSoftware