Atlassian (TEAM) closed the most recent trading day at $293.46, moving -0.06% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.

Coming into today, shares of the company had lost 22.86% in the past month. In that same time, the Computer and Technology sector lost 4.93%, while the S&P 500 lost 0.78%.

Wall Street will be looking for positivity from Atlassian as it approaches its next earnings report date. This is expected to be January 27, 2022. In that report, analysts expect Atlassian to post earnings of $0.38 per share. This would mark year-over-year growth of 2.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $638.63 million, up 27.38% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.58 per share and revenue of $2.59 billion. These totals would mark changes of +12.86% and +23.97%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Atlassian. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Atlassian is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note Atlassian's current valuation metrics, including its Forward P/E ratio of 185.67. This represents a premium compared to its industry's average Forward P/E of 47.03.

We can also see that TEAM currently has a PEG ratio of 8.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.79 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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