Dynatrace (DT) ended the recent trading session at $43.68, demonstrating a -3.43% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.29%.
The software intellegence company's stock has climbed by 12.04% in the past month, exceeding the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 2.2%.
The upcoming earnings release of Dynatrace will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.45, reflecting a 7.14% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $549.3 million, reflecting a 15.07% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.95 per share and a revenue of $2.33 billion, demonstrating changes of +14.71% and +15.23%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Dynatrace. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Dynatrace presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Dynatrace is currently trading at a Forward P/E ratio of 23.24. This represents a premium compared to its industry average Forward P/E of 13.05.
It's also important to note that DT currently trades at a PEG ratio of 1.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services was holding an average PEG ratio of 1.02 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Dynatrace, Inc. (DT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).