NYSE:DT qualifies as a high growth stock and is consolidating.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether DYNATRACE INC (NYSE:DT) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but DYNATRACE INC has surfaced on our radar for growth with base formation, warranting further examination.

Unpacking NYSE:DT's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:DT has achieved a 9 out of 10:

• DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.89%, which is quite impressive.
• The Earnings Per Share has been growing by 65.30% on average over the past years. This is a very strong growth
• The Revenue has grown by 24.03% in the past year. This is a very strong growth!
• DT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.82% yearly.
• Based on estimates for the next years, DT will show a very strong growth in Earnings Per Share. The EPS will grow by 21.63% on average per year.
• DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.53% yearly.

Deciphering NYSE:DT's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DT has received a 6 out of 10:

• DT has an Altman-Z score of 8.60. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
• DT has a Altman-Z score of 8.60. This is amongst the best in the industry. DT outperforms 88.93% of its industry peers.
• There is no outstanding debt for DT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

What does the Profitability looks like for NYSE:DT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:DT, the assigned 7 is a significant indicator of profitability:

• DT has a Return On Assets of 5.28%. This is amongst the best in the industry. DT outperforms 86.07% of its industry peers.
• The Return On Equity of DT (8.45%) is better than 85.71% of its industry peers.
• DT has a better Return On Invested Capital (4.33%) than 80.00% of its industry peers.
• The 3 year average ROIC (3.89%) for DT is below the current ROIC(4.33%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 11.77%, DT belongs to the top of the industry, outperforming 87.14% of the companies in the same industry.
• In the last couple of years the Profit Margin of DT has grown nicely.
• Looking at the Operating Margin, with a value of 8.84%, DT belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
• DT's Gross Margin of 80.93% is amongst the best of the industry. DT outperforms 86.07% of its industry peers.

How do we evaluate the setup for NYSE:DT?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:DT this score is currently 8:

DT has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 46.95, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of DT contains the most current fundamental analsysis.

Our latest full technical report of DT contains the most current technical analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.