Dynatrace (DT) closed the latest trading day at $52.23, indicating a -0.06% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.
The the stock of software intellegence company has fallen by 8.2% in the past month, lagging the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 2.8%.
Investors will be eagerly watching for the performance of Dynatrace in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.33, signifying a 3.13% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $426.67 million, indicating a 16.86% upward movement from the same quarter last year.
DT's full-year Zacks Consensus Estimates are calling for earnings of $1.32 per share and revenue of $1.67 billion. These results would represent year-over-year changes of +10% and +16.83%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Dynatrace is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Dynatrace is presently being traded at a Forward P/E ratio of 39.56. This indicates a premium in contrast to its industry's Forward P/E of 28.07.
Also, we should mention that DT has a PEG ratio of 3.93. 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 Computers - IT Services was holding an average PEG ratio of 2.47 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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