In the latest trading session, Dynatrace (DT) closed at $49.64, marking a -1.72% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.23%. Meanwhile, the Dow experienced a rise of 0.34%, and the technology-dominated Nasdaq saw an increase of 0.8%.
Coming into today, shares of the software intellegence company had gained 2.41% in the past month. In that same time, the Computer and Technology sector gained 6.04%, while the S&P 500 gained 3.57%.
The investment community will be paying close attention to the earnings performance of Dynatrace in its upcoming release. The company is slated to reveal its earnings on November 5, 2025. The company's upcoming EPS is projected at $0.41, signifying a 10.81% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $487.26 million, up 16.53% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.6 per share and a revenue of $1.98 billion, signifying shifts of +15.11% and +16.49%, respectively, from the last 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.
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, 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 moved 0.37% lower. Dynatrace is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Dynatrace is presently being traded at a Forward P/E ratio of 31.5. This valuation marks a premium compared to its industry average Forward P/E of 16.81.
It is also worth noting that DT currently has a PEG ratio of 2.46. 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. DT's industry had an average PEG ratio of 2.02 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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