Dynatrace (DT) ended the recent trading session at $53.03, demonstrating a -1.85% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.13%. Meanwhile, the Dow lost 1.79%, and the Nasdaq, a tech-heavy index, lost 1.3%.
Coming into today, shares of the software intellegence company had gained 1.89% in the past month. In that same time, the Computer and Technology sector gained 7.36%, while the S&P 500 gained 3.55%.
The investment community will be closely monitoring the performance of Dynatrace in its forthcoming earnings report. The company is forecasted to report an EPS of $0.38, showcasing a 15.15% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $466.07 million, indicating a 16.75% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.58 per share and a revenue of $1.95 billion, representing changes of +13.67% and +14.98%, respectively, from the prior year.
Investors might also notice recent changes to 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 7.27% higher. Dynatrace presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Dynatrace currently has a Forward P/E ratio of 34.2. This indicates a premium in contrast to its industry's Forward P/E of 21.07.
It's also important to note that DT currently trades at a PEG ratio of 2.71. 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. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 2.09.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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
