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Why Dynatrace (DT) Outpaced the Stock Market Today
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Dynatrace (DT - Free Report) closed at $44.30 in the latest trading session, marking a +1.3% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.11%. Elsewhere, the Dow saw an upswing of 1.64%, while the tech-heavy Nasdaq appreciated by 1.03%.
Shares of the software intellegence company have depreciated by 0.64% over the course of the past month, outperforming the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. The company plans to announce its earnings on August 7, 2024. The company is expected to report EPS of $0.29, up 7.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $392.2 million, up 17.82% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.28 per share and a revenue of $1.65 billion, signifying shifts of +6.67% and +15.59%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dynatrace. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.19% rise in the Zacks Consensus EPS estimate. As of now, Dynatrace holds a Zacks Rank of #3 (Hold).
In terms of valuation, Dynatrace is currently trading at a Forward P/E ratio of 34.24. Its industry sports an average Forward P/E of 28.04, so one might conclude that Dynatrace is trading at a premium comparatively.
It's also important to note that DT currently trades at a PEG ratio of 3.65. 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 average PEG ratio for the Computers - IT Services industry stood at 3.21 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DT in the coming trading sessions, be sure to utilize Zacks.com.
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Why Dynatrace (DT) Outpaced the Stock Market Today
Dynatrace (DT - Free Report) closed at $44.30 in the latest trading session, marking a +1.3% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.11%. Elsewhere, the Dow saw an upswing of 1.64%, while the tech-heavy Nasdaq appreciated by 1.03%.
Shares of the software intellegence company have depreciated by 0.64% over the course of the past month, outperforming the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. The company plans to announce its earnings on August 7, 2024. The company is expected to report EPS of $0.29, up 7.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $392.2 million, up 17.82% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.28 per share and a revenue of $1.65 billion, signifying shifts of +6.67% and +15.59%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dynatrace. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.19% rise in the Zacks Consensus EPS estimate. As of now, Dynatrace holds a Zacks Rank of #3 (Hold).
In terms of valuation, Dynatrace is currently trading at a Forward P/E ratio of 34.24. Its industry sports an average Forward P/E of 28.04, so one might conclude that Dynatrace is trading at a premium comparatively.
It's also important to note that DT currently trades at a PEG ratio of 3.65. 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 average PEG ratio for the Computers - IT Services industry stood at 3.21 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DT in the coming trading sessions, be sure to utilize Zacks.com.