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Here's Why Dynatrace (DT) Fell More Than Broader Market
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In the latest close session, Dynatrace (DT - Free Report) was down 1.63% at $47.82. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. Elsewhere, the Dow lost 0.27%, while the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the software intellegence company had lost 0.47% lagged the Computer and Technology sector's gain of 6.17% and the S&P 500's gain of 2.71%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. The company's upcoming EPS is projected at $0.41, signifying a 10.81% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $487 million, indicating a 16.47% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.6 per share and a revenue of $1.98 billion, signifying shifts of +15.11% and +16.41%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Dynatrace. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.26% downward. As of now, Dynatrace holds a Zacks Rank of #3 (Hold).
In terms of valuation, Dynatrace is presently being traded at a Forward P/E ratio of 30.34. This expresses a premium compared to the average Forward P/E of 17.22 of its industry.
Meanwhile, DT's PEG ratio is currently 2.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 2.05 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Here's Why Dynatrace (DT) Fell More Than Broader Market
In the latest close session, Dynatrace (DT - Free Report) was down 1.63% at $47.82. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. Elsewhere, the Dow lost 0.27%, while the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the software intellegence company had lost 0.47% lagged the Computer and Technology sector's gain of 6.17% and the S&P 500's gain of 2.71%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. The company's upcoming EPS is projected at $0.41, signifying a 10.81% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $487 million, indicating a 16.47% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.6 per share and a revenue of $1.98 billion, signifying shifts of +15.11% and +16.41%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Dynatrace. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.26% downward. As of now, Dynatrace holds a Zacks Rank of #3 (Hold).
In terms of valuation, Dynatrace is presently being traded at a Forward P/E ratio of 30.34. This expresses a premium compared to the average Forward P/E of 17.22 of its industry.
Meanwhile, DT's PEG ratio is currently 2.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 2.05 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.