In the latest close session, Dynatrace (DT) was down 1.28% at $52.58. The stock's change was less than the S&P 500's daily gain of 0.14%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.
Heading into today, shares of the software intellegence company had lost 2.11% over the past month, lagging the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. In that report, analysts expect Dynatrace to post earnings of $0.38 per share. This would mark year-over-year growth of 15.15%. Alongside, our most recent consensus estimate is anticipating revenue of $466.07 million, indicating a 16.75% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.58 per share and a revenue of $1.95 billion, demonstrating changes of +13.67% and +14.98%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dynatrace. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain 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).
Digging into valuation, Dynatrace currently has a Forward P/E ratio of 33.71. Its industry sports an average Forward P/E of 19.47, so one might conclude that Dynatrace is trading at a premium comparatively.
Investors should also note that DT has a PEG ratio of 2.67 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DT's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Dynatrace, Inc. (DT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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