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Dynatrace (DT) Suffers a Larger Drop Than the General Market: Key Insights
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Dynatrace (DT - Free Report) closed the most recent trading day at $61.07, moving -4.17% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
The stock of software intellegence company has risen by 14.15% in the past month, leading the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. It is anticipated that the company will report an EPS of $0.49, marking a 11.36% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $568.12 million, showing a 15.04% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.95 per share and revenue of $2.32 billion, indicating changes of +14.71% and +14.98%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Dynatrace is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Dynatrace's current valuation metrics, including its Forward P/E ratio of 32.64. This signifies a premium in comparison to the average Forward P/E of 14.61 for its industry.
One should further note that DT currently holds a PEG ratio of 2.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computers - IT Services industry stood at 1.32 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Dynatrace (DT) Suffers a Larger Drop Than the General Market: Key Insights
Dynatrace (DT - Free Report) closed the most recent trading day at $61.07, moving -4.17% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
The stock of software intellegence company has risen by 14.15% in the past month, leading the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
Market participants will be closely following the financial results of Dynatrace in its upcoming release. It is anticipated that the company will report an EPS of $0.49, marking a 11.36% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $568.12 million, showing a 15.04% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.95 per share and revenue of $2.32 billion, indicating changes of +14.71% and +14.98%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Dynatrace is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Dynatrace's current valuation metrics, including its Forward P/E ratio of 32.64. This signifies a premium in comparison to the average Forward P/E of 14.61 for its industry.
One should further note that DT currently holds a PEG ratio of 2.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computers - IT Services industry stood at 1.32 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.