Dynatrace (DT) closed the most recent trading day at $51.42, moving +1.62% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.59% for the day. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq lost 0.65%.
The software intellegence company's stock has climbed by 2.1% in the past month, exceeding the Computer and Technology sector's loss of 0.02% and the S&P 500's loss of 1.37%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. The company's earnings per share (EPS) are projected to be $0.49, reflecting a 11.36% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $568.32 million, indicating a 15.08% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.95 per share and a revenue of $2.32 billion, indicating changes of +14.71% and +15.05%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dynatrace. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.59% lower within the past month. Right now, Dynatrace possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Dynatrace is currently being traded at a Forward P/E ratio of 26. This signifies a premium in comparison to the average Forward P/E of 13.32 for its industry.
We can also see that DT currently has a PEG ratio of 1.77. 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. The Computers - IT Services industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 37% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Dynatrace, Inc. (DT): Free Stock Analysis Report
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