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

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Dynatrace (DT - Free Report) closed at $51.24 in the latest trading session, marking a +1.45% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq lost 0.23%.

Prior to today's trading, shares of the software intellegence company had lost 7.81% over the past month. This has lagged the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45% in that time.

The investment community will be closely monitoring the performance of Dynatrace in its forthcoming earnings report. The company is predicted to post an EPS of $0.33, indicating a 3.13% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $426.67 million, indicating a 16.86% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.32 per share and a revenue of $1.67 billion, representing changes of +10% and +16.83%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.16% lower. At present, Dynatrace boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Dynatrace currently has a Forward P/E ratio of 38.26. This signifies a premium in comparison to the average Forward P/E of 27.52 for its industry.

It is also worth noting that DT currently has a PEG ratio of 3.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.48 based on yesterday's closing prices.

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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