Why NYSE:DT Is a Standout High-Growth Stock in a Consolidation Phase.

Last update: Sep 28, 2023

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether DYNATRACE INC (NYSE:DT) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but DYNATRACE INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Understanding NYSE:DT's Growth Score

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:DT has earned a 9 for growth:

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

Health Assessment of NYSE:DT

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:DT, the assigned 6 for health provides valuable insights:

An Altman-Z score of 8.45 indicates that DT is not in any danger for bankruptcy at the moment.
The Altman-Z score of DT (8.45) is better than 89.29% 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.

Profitability Assessment of 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:

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

Why is NYSE:DT a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:DT is 8:

Although the technical rating is bad, DT does present a nice setup opportunity. Prices have been consolidating lately. There is a support zone below the current price at 45.92, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of DT for a complete fundamental analysis.

Check the latest full technical report of DT for a complete technical analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.