NYSE:DT—A High-Growth Stock Gearing Up for Its Next Upward Move.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if DYNATRACE INC (NYSE:DT) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted DYNATRACE INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

What does the Growth looks like for NYSE:DT

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:DT was assigned a score of 9 for growth:

• The Earnings Per Share has grown by an impressive 47.89% over the past year.
• Measured over the past years, DT shows a very strong growth in Earnings Per Share. The EPS has been growing by 65.30% on average per year.
• 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
• Based on estimates for the next years, DT will show a quite strong growth in Revenue. The Revenue will grow by 19.53% on average per year.

Assessing Health for NYSE:DT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:DT has earned a 6 out of 10:

• An Altman-Z score of 8.53 indicates that DT is not in any danger for bankruptcy at the moment.
• DT has a better Altman-Z score (8.53) than 89.29% of its industry peers.
• DT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

Assessing Profitability 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:

• With an excellent Return On Assets value of 5.28%, DT belongs to the best of the industry, outperforming 86.07% of the companies in the same industry.
• DT's Return On Equity of 8.45% is amongst the best of the industry. DT outperforms 85.71% of its industry peers.
• DT has a Return On Invested Capital of 4.33%. This is in the better half of the industry: DT outperforms 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.
• With an excellent Profit Margin value of 11.77%, DT belongs to the best 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 has a better Gross Margin (80.93%) than 86.07% of its industry peers.

How do we evaluate the setup for NYSE:DT?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:DT has a 8 as its setup rating:

Although the technical rating is bad, DT does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 47.23. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 46.56, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of DT

For an up to date full technical analysis you can check the technical report of DT

Keep in mind

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.