Dynatrace (DT) closed at $48.42 in the latest trading session, marking a -1.22% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 1.97%. On the other hand, the Dow registered a loss of 1.69%, and the technology-centric Nasdaq decreased by 2.7%.
Shares of the software intellegence company have depreciated by 14.47% over the course of the past month, underperforming the Computer and Technology sector's loss of 4.83% and the S&P 500's loss of 2.79%.
The investment community will be paying close attention to the earnings performance of Dynatrace in its upcoming release. The company is predicted to post an EPS of $0.30, indicating constancy compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $434.74 million, reflecting a 14.15% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.37 per share and a revenue of $1.69 billion, demonstrating changes of +14.17% and +18.02%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. Dynatrace currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Dynatrace is currently being traded at a Forward P/E ratio of 35.78. This expresses a premium compared to the average Forward P/E of 21.26 of its industry.
Investors should also note that DT has a PEG ratio of 2.81 right now. 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 had an average PEG ratio of 2 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 76, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.
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Dynatrace, Inc. (DT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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