Dynatrace (DT) closed the most recent trading day at $43.34, moving -1.72% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.74% for the day. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.76%.
The stock of software intellegence company has fallen by 1.78% in the past month, lagging the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
The investment community will be paying close attention to the earnings performance of Dynatrace in its upcoming release. The company's upcoming EPS is projected at $0.41, signifying a 10.81% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $505.77 million, up 15.96% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.63 per share and a revenue of $1.99 billion, representing changes of +17.27% and +17.21%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Dynatrace. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. 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 27.02. This signifies a premium in comparison to the average Forward P/E of 17.48 for its industry.
It is also worth noting that DT currently has a PEG ratio of 1.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Dynatrace, Inc. (DT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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