Dynatrace (DT) ended the recent trading session at $44.24, demonstrating a +2.01% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.18%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 2.07%.
The software intellegence company's stock has climbed by 1.83% in the past month, exceeding the Computer and Technology sector's loss of 5.33% and the S&P 500's loss of 2.9%.
Investors will be eagerly watching for the performance of Dynatrace in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.45, marking a 7.14% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $549.3 million, up 15.07% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.95 per share and a revenue of $2.33 billion, indicating changes of +14.71% and +15.23%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Dynatrace boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Dynatrace is presently being traded at a Forward P/E ratio of 22.29. This expresses a premium compared to the average Forward P/E of 12.8 of its industry.
We can additionally observe that DT currently boasts a PEG ratio of 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 1.01 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 36% 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.
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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Dynatrace, Inc. (DT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).