Dynatrace (DT) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest trading session, Dynatrace (DT) closed at $59.35, marking a -0.8% move from the previous day. This change lagged the S&P 500's 0.06% loss on the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.76%.
Prior to today's trading, shares of the software intellegence company had gained 9.4% over the past month. This has outpaced the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 3.36% in that time.
Investors will be eagerly watching for the performance of Dynatrace in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 8, 2024. The company is predicted to post an EPS of $0.28, indicating a 12% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $357.64 million, reflecting a 20.23% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.11 per share and a revenue of $1.42 billion, representing changes of +14.43% and +22.14%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dynatrace. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been a 0.25% rise in the Zacks Consensus EPS estimate. Dynatrace currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Dynatrace is holding a Forward P/E ratio of 53.84. This signifies a premium in comparison to the average Forward P/E of 27.63 for its industry.
Meanwhile, DT's PEG ratio is currently 4.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 2.6 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Dynatrace, Inc. (DT) : Free Stock Analysis Report
