Dynatrace (DT) closed the most recent trading day at $43.74, moving -1.93% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.46%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.57%.
Prior to today's trading, shares of the software intellegence company had gained 1.66% lagged the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 4.22%.
The investment community will be paying close attention to the earnings performance of Dynatrace in its upcoming release. In that report, analysts expect Dynatrace to post earnings of $0.41 per share. This would mark year-over-year growth of 10.81%. Meanwhile, our latest consensus estimate is calling for revenue of $505.77 million, up 15.96% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.63 per share and revenue of $1.99 billion, indicating changes of +17.27% and +17.21%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. Dynatrace is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Dynatrace is at present trading with a Forward P/E ratio of 27.33. For comparison, its industry has an average Forward P/E of 16.49, which means Dynatrace is trading at a premium to the group.
It's also important to note that DT currently trades at a PEG ratio of 1.93. 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 1.84.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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