Dynatrace (DT) Dips More Than Broader Market: What You Should Know
Dynatrace (DT) closed the latest trading day at $47.81, indicating a -1.89% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 1.34%. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 1.62%.
Coming into today, shares of the software intellegence company had gained 2.81% in the past month. In that same time, the Computer and Technology sector lost 0.34%, while the S&P 500 lost 1.57%.
The upcoming earnings release of Dynatrace will be of great interest to investors. The company's earnings report is expected on November 2, 2023. The company's upcoming EPS is projected at $0.27, signifying a 22.73% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $344.48 million, up 23.32% from the year-ago period.
DT's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $1.41 billion. These results would represent year-over-year changes of +8.25% and +21.72%, respectively.
Any recent changes to analyst estimates for Dynatrace should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Dynatrace currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Dynatrace is currently exchanging hands at a Forward P/E ratio of 46.58. This signifies a premium in comparison to the average Forward P/E of 24.48 for its industry.
Meanwhile, DT's PEG ratio is currently 4.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computers - IT Services industry stood at 2.2 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 42, finds itself in the top 17% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Dynatrace, Inc. (DT) : Free Stock Analysis Report
