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Dynatrace (DT) Falls More Steeply Than Broader Market: What Investors Need to Know

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Dynatrace (DT - Free Report) closed at $34.57 in the latest trading session, marking a -9.15% move from the prior day. This change lagged the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 1.43%.

Coming into today, shares of the software intellegence company had lost 10.74% in the past month. In that same time, the Computer and Technology sector gained 1.75%, while the S&P 500 gained 1.8%.

Analysts and investors alike will be keeping a close eye on the performance of Dynatrace in its upcoming earnings disclosure. The company's earnings report is set to go public on February 9, 2026. The company is forecasted to report an EPS of $0.41, showcasing a 10.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $505.93 million, indicating a 15.99% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.63 per share and a revenue of $1.99 billion, representing changes of +17.27% and +17.23%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.78% rise in the Zacks Consensus EPS estimate. Right now, Dynatrace possesses a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Dynatrace has a Forward P/E ratio of 23.28 right now. This signifies a premium in comparison to the average Forward P/E of 16.75 for its industry.

Meanwhile, DT's PEG ratio is currently 1.64. 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. DT's industry had an average PEG ratio of 1.31 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 40% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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