Jim Cramer Named 9 Software Stocks as Potential Undervalued Buys

2. Atlassian Corporation (NASDAQ:TEAM)

Number of Hedge Fund Holders: 60

Atlassian Corporation (NASDAQ:TEAM) is one of the software stocks that Jim Cramer named as potential undervalued buys. Cramer highlighted why the stock has been “obliterated,” as he remarked:

Now, a little more controversial. Let’s talk Atlassian, symbol TEAM, another collaboration software firm, mainly aimed at software developers. Because they make software for coders, and coding jobs are under threat from AI, the stock’s been obliterated, down over 70% from its 52-week high. But when Atlassian reported last night, it delivered a terrific beat and raise quarter.

It’s just that Wall Street didn’t care as the analysts nitpicked the company’s R&D spending, so the stock tumbled another 4% today. At this point, though, Atlassian’s expected to put up nearly 30% earnings growth this year. Yet the stock sells for just 20 times its 2026 earnings estimates. Look, it’s absurdly cheap unless you think the business is about to fall off a cliff, and some people think that. I do think AI is a real threat here, but my gut feeling says it’s a long-term threat, not something immediate.

Atlassian Corporation (NASDAQ:TEAM) develops collaboration and productivity software that connects teams and streamlines workflows.