Dynatrace (DT) closed the most recent trading day at $52.50, moving +2.16% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.27%.
The stock of software intellegence company has fallen by 3.09% in the past month, lagging the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 15.15% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $466.07 million, reflecting a 16.75% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.58 per share and revenue of $1.95 billion, which would represent changes of +13.67% and +14.98%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dynatrace. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Dynatrace boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Dynatrace is currently trading at a Forward P/E ratio of 32.53. This represents a premium compared to its industry average Forward P/E of 19.05.
Also, we should mention that DT has a PEG ratio of 2.58. 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 2.02.
The Computers – IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.
