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Why the Market Dipped But Dynatrace (DT) Gained Today
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Dynatrace (DT - Free Report) closed the most recent trading day at $35.99, moving +1.07% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.49%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 0.9%.
Heading into today, shares of the software intellegence company had lost 4.09% over the past month, lagging the Computer and Technology sector's gain of 21.92% and the S&P 500's gain of 12.8%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. On that day, Dynatrace is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 18.18%. At the same time, our most recent consensus estimate is projecting a revenue of $520.2 million, reflecting a 16.85% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.68 per share and revenue of $2.01 billion, indicating changes of +20.86% and +18.09%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Dynatrace holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Dynatrace is holding a Forward P/E ratio of 18.6. This valuation marks a premium compared to its industry average Forward P/E of 12.73.
It's also important to note that DT currently trades at a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DT's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why the Market Dipped But Dynatrace (DT) Gained Today
Dynatrace (DT - Free Report) closed the most recent trading day at $35.99, moving +1.07% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.49%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 0.9%.
Heading into today, shares of the software intellegence company had lost 4.09% over the past month, lagging the Computer and Technology sector's gain of 21.92% and the S&P 500's gain of 12.8%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. On that day, Dynatrace is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 18.18%. At the same time, our most recent consensus estimate is projecting a revenue of $520.2 million, reflecting a 16.85% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.68 per share and revenue of $2.01 billion, indicating changes of +20.86% and +18.09%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Dynatrace holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Dynatrace is holding a Forward P/E ratio of 18.6. This valuation marks a premium compared to its industry average Forward P/E of 12.73.
It's also important to note that DT currently trades at a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DT's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.