NYSE:DT—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Last update: Oct 3, 2023

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.

Assessing Growth for NYSE:DT

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:

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.
DT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 65.30% yearly.
Looking at the last year, DT shows a very strong growth in Revenue. 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
The Revenue is expected to grow by 19.53% on average over the next years. This is quite good.

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:

DT has an Altman-Z score of 8.57. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DT (8.57) is better than 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.

Assessing Profitability for NYSE:DT

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:DT has earned a 7 out of 10:

DT has a Return On Assets of 5.28%. This is amongst the best in the industry. DT outperforms 86.48% of its industry peers.
DT has a better Return On Equity (8.45%) than 86.12% of its industry peers.
DT has a better Return On Invested Capital (4.33%) than 80.43% 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.
DT's Profit Margin of 11.77% is amongst the best of the industry. DT outperforms 87.54% 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 81.49% of its industry peers.
Looking at the Gross Margin, with a value of 80.93%, DT belongs to the top of the industry, outperforming 86.12% of the companies in the same industry.

Why is NYSE:DT a setup?

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

Although the technical rating is bad, DT does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 47.09. 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.

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

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

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.