In the latest close session, Dynatrace (DT) was up +2.62% at $43.84. The stock's change was more than the S&P 500's daily loss of 0.34%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq appreciated by 0.16%.
Prior to today's trading, shares of the software intellegence company had lost 5.44% lagged the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
The upcoming earnings release of Dynatrace will be of great interest to investors. In that report, analysts expect Dynatrace to post earnings of $0.41 per share. This would mark year-over-year growth of 10.81%. In the meantime, our current consensus estimate forecasts the revenue to be $505.77 million, indicating a 15.96% growth compared to the corresponding quarter of the prior year.
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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dynatrace. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Dynatrace is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Dynatrace has a Forward P/E ratio of 26.17 right now. This expresses a premium compared to the average Forward P/E of 17.42 of its industry.
We can also see that DT currently has a PEG ratio of 1.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computers - IT Services industry stood at 1.52 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 45% 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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