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Dynatrace (DT) Beats Stock Market Upswing: What Investors Need to Know

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The latest trading session saw Dynatrace (DT - Free Report) ending at $55.09, denoting a +1.66% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.78%.

Heading into today, shares of the software intellegence company had gained 1.35% over the past month, lagging the Computer and Technology sector's gain of 1.87% and the S&P 500's gain of 1.67% in that time.

Market participants will be closely following the financial results of Dynatrace in its upcoming release. The company plans to announce its earnings on November 7, 2024. The company is expected to report EPS of $0.32, up 3.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $406.05 million, up 15.45% from the year-ago period.

DT's full-year Zacks Consensus Estimates are calling for earnings of $1.28 per share and revenue of $1.63 billion. These results would represent year-over-year changes of +6.67% and +14.15%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Dynatrace is carrying a Zacks Rank of #3 (Hold).

Investors should also note Dynatrace's current valuation metrics, including its Forward P/E ratio of 42.31. This valuation marks a premium compared to its industry's average Forward P/E of 28.21.

One should further note that DT currently holds a PEG ratio of 4.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry had an average PEG ratio of 2.8 as trading concluded yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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