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Dynatrace (DT) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest market close, Dynatrace (DT) reached $46.57, with a -1% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.23%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq increased by 0.34%.

Shares of the software intellegence company have depreciated by 1.49% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.01% and lagging the S&P 500's gain of 3.96%.

Investors will be eagerly watching for the performance of Dynatrace in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.29, indicating a 7.41% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $392.12 million, up 17.79% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.28 per share and a revenue of $1.65 billion, demonstrating changes of +6.67% and +15.58%, respectively, from the preceding year.

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Any recent changes to analyst estimates for Dynatrace should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 witnessed a 3.05% decrease. Dynatrace presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Dynatrace is at present trading with a Forward P/E ratio of 36.87. For comparison, its industry has an average Forward P/E of 26.6, which means Dynatrace is trading at a premium to the group.

One should further note that DT currently holds a PEG ratio of 3.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 3.01 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 145, finds itself in the bottom 43% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Dynatrace, Inc. (DT) : Free Stock Analysis Report

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