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Dynatrace (DT) Increases Despite Market Slip: Here's What You Need to Know

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In the latest trading session, Dynatrace (DT - Free Report) closed at $44.74, marking a +1.66% move from the previous day. This move outpaced the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 0.71%.

Heading into today, shares of the software intellegence company had lost 2.98% over the past month, lagging the Computer and Technology sector's gain of 6.52% and the S&P 500's gain of 3.53% in that time.

The upcoming earnings release of Dynatrace will be of great interest to investors. The company is expected to report EPS of $0.29, up 7.41% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $392.12 million, showing a 17.79% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.28 per share and revenue of $1.65 billion. These totals would mark changes of +6.67% and +15.58%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Dynatrace is currently a Zacks Rank #3 (Hold).

Investors should also note Dynatrace's current valuation metrics, including its Forward P/E ratio of 34.49. Its industry sports an average Forward P/E of 27.03, so one might conclude that Dynatrace is trading at a premium comparatively.

We can also see that DT currently has a PEG ratio of 3.68. 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. The Computers - IT Services was holding an average PEG ratio of 2.95 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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