Dynatrace (DT) closed the most recent trading day at $49.51, moving +1.87% from the previous trading session. This change outpaced the S&P 500's 0.59% gain on the day. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 0.44%.
Shares of the software intellegence company witnessed a loss of 4.5% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 7.68%, and the S&P 500's gain of 2.72%.
Investors will be eagerly watching for the performance of Dynatrace in its upcoming earnings disclosure. On that day, Dynatrace is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 10.81%. Simultaneously, our latest consensus estimate expects the revenue to be $487 million, showing a 16.47% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.6 per share and a revenue of $1.98 billion, demonstrating changes of +15.11% and +16.41%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 a 1.26% decrease. Currently, Dynatrace is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Dynatrace is at present trading with a Forward P/E ratio of 30.32. This expresses a premium compared to the average Forward P/E of 16.25 of its industry.
It is also worth noting that DT currently has a PEG ratio of 2.37. 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 Computers – IT Services industry currently had an average PEG ratio of 2 as of yesterday's close.
The Computers – IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 42% of all 250+ industries.
