Dynatrace (DT) ended the recent trading session at $42.90, demonstrating a +1.73% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 2.51%. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 2.71%.
Coming into today, shares of the software intellegence company had lost 16.78% in the past month. In that same time, the Computer and Technology sector lost 12.18%, while the S&P 500 lost 8.86%.
Analysts and investors alike will be keeping a close eye on the performance of Dynatrace in its upcoming earnings disclosure. The company is expected to report EPS of $0.30, unchanged from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $434.56 million, indicating a 14.1% increase compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.48% lower. Dynatrace currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Dynatrace currently has a Forward P/E ratio of 27.55. This signifies a premium in comparison to the average Forward P/E of 15.51 for its industry.
We can also see that DT currently has a PEG ratio of 2.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dynatrace, Inc. (DT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
