Do You Believe in The Strong Growth Potential Of Atlassian Corporation (TEAM)?

Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the Fund (Investor Shares) returned 8.55% (net of fees) outperforming the Russell Midcap Index’s 6.54% return. Stock selection in Health Care sector drove the outperformance of the portfolio while stock selection within Real Estate detracted. The Fund’s focus on quality characteristics has benefited from reduced cyclical pressures and company-specific opportunities. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Parnassus Mid Cap Fund highlighted stocks like Atlassian Corporation (NASDAQ:TEAM), in the third quarter 2024 investor letter. Atlassian Corporation (NASDAQ:TEAM) is a company that designs, develops, licenses, and maintains various software products. The one-month return of Atlassian Corporation (NASDAQ:TEAM) was 11.68%, and its shares gained 25.80% of their value over the last 52 weeks. On December 12, 2024, Atlassian Corporation (NASDAQ:TEAM) stock closed at $279.18 per share with a market capitalization of $71.528 billion.

Parnassus Mid Cap Fund stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its Q3 2024 investor letter:

“Atlassian Corporation (NASDAQ:TEAM), a workflow software provider, has faced short-term volatility due to the migration of their on-premises software offering to the cloud. The company’s growth potential remains strong, and its profit picture should improve as the cloud transition is completed.”

A modern software engineering team, huddled around their desks, discussing a software solution.

Atlassian Corporation (NASDAQ:TEAM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Atlassian Corporation (NASDAQ:TEAM) at the end of the third quarter which was 47 in the previous quarter. While we acknowledge the potential of Atlassian Corporation (NASDAQ:TEAM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Atlassian Corporation (NASDAQ:TEAM) and shared the list of stocks Jim Cramer discussed, recently. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.