Dynatrace (DT) closed the most recent trading day at $52.04, moving -1.55% from the previous trading session. This change lagged the S&P 500’s 0.72% loss on the day.
Heading into today, shares of the software intellegence company had gained 6.68% over the past month, lagging the Computer and Technology sector’s gain of 11.47% and outpacing the S&P 500’s gain of 6.13% in that time.
Wall Street will be looking for positivity from DT as it approaches its next earnings report date. This is expected to be May 12, 2021. The company is expected to report EPS of $0.14, up 27.27% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $191.25 million, up 27.01% from the year-ago period.
It is also important to note the recent changes to analyst estimates for DT. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DT is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, DT is currently trading at a Forward P/E ratio of 83.08. Its industry sports an average Forward P/E of 28.06, so we one might conclude that DT is trading at a premium comparatively.
Meanwhile, DT’s PEG ratio is currently 2.34. 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 2.02 as of yesterday’s close.
The Computers – IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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