Dynatrace (DT) Outperforms Broader Market: What You Need to Know
Dynatrace (DT) closed the latest trading day at $55.37, indicating a +0.25% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.17%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq gained 0.2%.
The the stock of software intellegence company has risen by 6.38% in the past month, leading the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.71%.
The upcoming earnings release of Dynatrace will be of great interest to investors. The company is forecasted to report an EPS of $0.28, showcasing a 12% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $357.55 million, indicating a 20.2% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.11 per share and revenue of $1.41 billion, which would represent changes of +14.43% and +22.13%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Dynatrace presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Dynatrace is currently being traded at a Forward P/E ratio of 49.76. Its industry sports an average Forward P/E of 27.9, so one might conclude that Dynatrace is trading at a premium comparatively.
Investors should also note that DT has a PEG ratio of 3.82 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.38.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Dynatrace, Inc. (DT) : Free Stock Analysis Report
