We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dynatrace (DT) Stock Slides as Market Rises: Facts to Know Before You Trade
Read MoreHide Full Article
Dynatrace (DT - Free Report) closed the most recent trading day at $57.95, moving -1.24% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.51% for the day. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 0.48%.
Prior to today's trading, shares of the software intellegence company had gained 9.83% outpaced the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 0.74%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. The company is expected to report EPS of $0.49, up 11.36% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $567.79 million, indicating a 14.97% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.95 per share and a revenue of $2.32 billion, demonstrating changes of +14.71% and +14.99%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.81% decrease. Dynatrace is currently a Zacks Rank #3 (Hold).
With respect to valuation, Dynatrace is currently being traded at a Forward P/E ratio of 30.11. This expresses a premium compared to the average Forward P/E of 12.92 of its industry.
Also, we should mention that DT has a PEG ratio of 2.05. 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. The Computers - IT Services industry had an average PEG ratio of 1.38 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 42% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
Image: Bigstock
Dynatrace (DT) Stock Slides as Market Rises: Facts to Know Before You Trade
Dynatrace (DT - Free Report) closed the most recent trading day at $57.95, moving -1.24% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.51% for the day. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 0.48%.
Prior to today's trading, shares of the software intellegence company had gained 9.83% outpaced the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 0.74%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. The company is expected to report EPS of $0.49, up 11.36% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $567.79 million, indicating a 14.97% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.95 per share and a revenue of $2.32 billion, demonstrating changes of +14.71% and +14.99%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.81% decrease. Dynatrace is currently a Zacks Rank #3 (Hold).
With respect to valuation, Dynatrace is currently being traded at a Forward P/E ratio of 30.11. This expresses a premium compared to the average Forward P/E of 12.92 of its industry.
Also, we should mention that DT has a PEG ratio of 2.05. 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. The Computers - IT Services industry had an average PEG ratio of 1.38 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 42% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.