Dynatrace (DT) Beats Stock Market Upswing: What Investors Need to Know

The most recent trading session ended with Dynatrace (DT) standing at $47.73, reflecting a +1.36% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.15%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.32%.

Heading into today, shares of the software intellegence company had gained 1.88% over the past month, outpacing the Computer and Technology sector's gain of 1.32% and the S&P 500's gain of 1.65% in that time.

Investors will be eagerly watching for the performance of Dynatrace in its upcoming earnings disclosure. In that report, analysts expect Dynatrace to post earnings of $0.27 per share. This would mark a year-over-year decline of 12.9%. At the same time, our most recent consensus estimate is projecting a revenue of $375.2 million, reflecting a 19.31% rise from the equivalent quarter last year.

Any recent changes to analyst estimates for Dynatrace should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. Dynatrace is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Dynatrace currently has a Forward P/E ratio of 35.7. This represents a premium compared to its industry's average Forward P/E of 25.44.

One should further note that DT currently holds a PEG ratio of 2.25. 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. The Computers - IT Services was holding an average PEG ratio of 2.31 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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