In the latest trading session, Dynatrace (DT) closed at $41.38, marking a -2.17% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.19%. On the other hand, the Dow registered a loss of 0.8%, and the technology-centric Nasdaq decreased by 0.1%.
Coming into today, shares of the software intellegence company had lost 4.69% in the past month. In that same time, the Computer and Technology sector gained 2.62%, while the S&P 500 gained 2.26%.
The investment community will be closely monitoring the performance of Dynatrace in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.41, reflecting a 10.81% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $505.88 million, reflecting a 15.98% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.63 per share and revenue of $1.99 billion. These totals would mark changes of +17.27% and +17.22%, respectively, from last year.
Any recent changes to analyst estimates for Dynatrace should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Dynatrace is holding a Zacks Rank of #4 (Sell) right now.
In the context of valuation, Dynatrace is at present trading with a Forward P/E ratio of 25.92. This indicates a premium in contrast to its industry's Forward P/E of 17.84.
Meanwhile, DT's PEG ratio is currently 1.83. 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 1.53 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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