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

Last update: Oct 2, 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

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:DT scores a 9 out of 10:

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%.
The Revenue has been growing by 23.82% on average over the past years. This is a very strong growth!
DT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.63% yearly.
DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.53% yearly.

Health Analysis for NYSE:DT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:DT scores a 6 out of 10:

An Altman-Z score of 8.54 indicates that DT is not in any danger for bankruptcy at the moment.
DT has a Altman-Z score of 8.54. This is amongst the best in the industry. DT outperforms 86.48% 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.

Evaluating Profitability: NYSE:DT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:DT scores a 7 out of 10:

The Return On Assets of DT (5.28%) is better than 86.48% of its industry peers.
DT has a Return On Equity of 8.45%. This is amongst the best in the industry. DT outperforms 86.12% of its industry peers.
With an excellent Return On Invested Capital value of 4.33%, DT belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
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.
DT's Profit Margin of 11.77% is amongst the best of the industry. DT outperforms 87.54% of its industry peers.
DT's Profit Margin has improved in the last couple of years.
The Operating Margin of DT (8.84%) is better than 81.49% of its industry peers.
DT has a Gross Margin of 80.93%. This is amongst the best in the industry. DT outperforms 86.12% of its industry peers.

How does the Setup look for NYSE:DT

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:DT currently has a 8 as setup rating:

DT has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 47.15. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 46.59, a Stop Loss order could be placed below this zone.

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

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.

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.