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Dynatrace (DT) Laps the Stock Market: Here's Why

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In the latest trading session, Dynatrace (DT - Free Report) closed at $54.71, marking a +1.03% move from the previous day. This move outpaced the S&P 500's daily gain of 0.02%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 0.33%.

Heading into today, shares of the software intellegence company had lost 1.35% over the past month, lagging the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93%.

The investment community will be closely monitoring the performance of Dynatrace in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2025. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 15.15% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $466.07 million, up 16.75% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.58 per share and a revenue of $1.95 billion, representing changes of +13.67% and +14.98%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dynatrace. Recent revisions tend to reflect the latest near-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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Dynatrace boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Dynatrace is presently being traded at a Forward P/E ratio of 34.27. This represents a premium compared to its industry average Forward P/E of 19.78.

We can additionally observe that DT currently boasts a PEG ratio of 2.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 1.95.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 35% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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