I looked at it from my IBD point of veiw and bought it earlier on a valid breakout. Here are the current “growth rankings”
It is #1 in its stock group (followed by VMW, MFGK, CDP, RP) and has strong rankings:
Composite Rating 96 Pass
EPS Rating 96 Pass
RS Rating 95 Pass
Group RS Rating C Neutral
SMR Rating A Pass
Acc/Dis Rating B- Pass
Earnings due 1/17/18.
EPS change last Q was only 20%, a bit weak,
EPS 3 quarters avg EPS growth only 21%, a bit weak,
EPS est % change current Q is 33%, above the 30% min you want to see, getting better!
Last Q earnings surprise was 33%.
3yr EPS growth rate 37% - good.
and EPS est % change for current year is 31%
Sales % change last Q 42% - nice
3yr sales growth rate 41% - nice
annual ROE only 10.5%, weak.
– not a reason to buy, but a nice option: I don’t think this will be around in 3 years, too tempting a buyout candidate.
From an article 12/8
For its current fiscal year 2018, Atlassian said it expects to earn 46 to 47 cents a share on sales of $826 to $834 million, nicely ahead of the consensus estimate at the time. Analysts are currently modeling 2018 earnings of 47 cents a share, which would be up 31% compared with 2017. For fiscal 2019, earnings growth is seen accelerating, rising 34%.
The company’s team collaboration and productivity software solutions continue to see strong demand. Its Jira offering is a workflow management system that helps teams plan, organize, track and manage work and projects. Confluence, meanwhile is a content collaboration platform, while HipChat provides a way for teams to communicate in real-time.
One major feather in Atlassian’s cap is outstanding fund sponsorship. Three top-performing growth funds own shares including Fidelity Contrafund (FCNTX), up 30% year-to-date, Fidelity OTC Portfolio (FOCPX), up 36.5% and T. Rowe Price New Horizons (PRNHX), up 28.3%.
Chartwise, Atlassian still looks reasonably healthy, but it’s important to note that the recent pullback to the 50-day moving average came in heavy volume, and the stock’s latest four-day rally has been in light volume. In other words, there was conviction behind the selling and not much conviction behind the buying on the way back up. Low-volume pullbacks to support levels and bounces with conviction are preferred, because it signifies retail selling on the way down and institutional buying on the way back up