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In the latest market close, Dynatrace (DT) reached $47.35, with a +1.92% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 0.55%.
Coming into today, shares of the software intellegence company had lost 1.46% in the past month. In that same time, the Computer and Technology sector gained 0.6%, while the S&P 500 lost 0.84%.
The upcoming earnings release of Dynatrace will be of great interest to investors. The company's upcoming EPS is projected at $0.30, signifying steadiness compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $434.56 million, showing a 14.1% escalation compared to the year-ago quarter.
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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.48% decrease. As of now, Dynatrace holds a Zacks Rank of #3 (Hold).
Looking at valuation, Dynatrace is presently trading at a Forward P/E ratio of 30.35. This valuation marks a premium compared to its industry's average Forward P/E of 16.64.
One should further note that DT currently holds a PEG ratio of 2.38. 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 1.79 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 140, finds itself in the bottom 44% echelons 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.