The latest trading session saw Dynatrace (DT) ending at $50.74, denoting a +0.32% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.65%.

Prior to today's trading, shares of the software intellegence company had gained 3.37% over the past month. This has outpaced the Computer and Technology sector's gain of 3.3% and lagged the S&P 500's gain of 4.86% in that time.

The investment community will be closely monitoring the performance of Dynatrace in its forthcoming earnings report. The company is forecasted to report an EPS of $0.32, showcasing a 3.23% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $404.39 million, indicating a 14.98% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.28 per share and revenue of $1.63 billion, which would represent changes of +6.67% and +13.69%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Dynatrace. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. 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 39.52. For comparison, its industry has an average Forward P/E of 27.02, which means Dynatrace is trading at a premium to the group.

One should further note that DT currently holds a PEG ratio of 4.22. 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 3.01 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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