Dynatrace (DT) closed the most recent trading day at $33.27, moving -1.42% from the previous trading session. This change lagged the S&P 500's daily gain of 1.18%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq increased by 1.96%.
Shares of the software intellegence company have depreciated by 14.28% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.37%, and the S&P 500's gain of 3.93%.
Investors will be eagerly watching for the performance of Dynatrace in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.38, signifying a 15.15% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $520.17 million, indicating a 16.85% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.68 per share and a revenue of $2 billion, representing changes of +20.86% and +18.02%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Dynatrace presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Dynatrace is holding a Forward P/E ratio of 17.68. This indicates a premium in contrast to its industry's Forward P/E of 12.77.
It's also important to note that DT currently trades at a PEG ratio of 1.25. 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. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.11.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
SeeWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dynatrace, Inc. (DT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).