Dynatrace (DT) Exceeds Market Returns: Some Facts to Consider
Dynatrace (DT) closed the most recent trading day at $55.83, moving +1.16% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 1.14%. On the other hand, the Dow registered a gain of 0.61%, and the technology-centric Nasdaq increased by 1.69%.
Shares of the software intellegence company have appreciated by 11.27% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.69%, and the S&P 500's loss of 2.85%.
The investment community will be closely monitoring the performance of Dynatrace in its forthcoming earnings report. The company is expected to report EPS of $0.49, up 11.36% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $567.79 million, showing a 14.97% escalation compared to the year-ago quarter.
DT's full-year Zacks Consensus Estimates are calling for earnings of $1.95 per share and revenue of $2.32 billion. These results would represent year-over-year changes of +14.71% and +14.99%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.3% lower. Dynatrace is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Dynatrace is holding a Forward P/E ratio of 28.31. This denotes a premium relative to the industry average Forward P/E of 14.
Also, we should mention that DT has a PEG ratio of 1.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computers - IT Services industry had an average PEG ratio of 1.43 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 100, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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This article originally published on Zacks Investment Research (zacks.com).
