Is NYSE:DT on the Verge of a Major Breakout as a Strong Growth Stock?

Last update: Oct 5, 2023

In this article, we'll take a closer look at DYNATRACE INC (NYSE:DT) as a potential candidate for growth investing. While it's important for investors to conduct their own research, DYNATRACE INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

A Closer Look at Growth for NYSE:DT

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:DT, the assigned 9 reflects its growth potential:

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.
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.
Looking at the last year, DT shows a very strong growth in Revenue. The Revenue has grown by 24.03%.
Measured over the past years, DT shows a very strong growth in Revenue. The Revenue has been growing by 23.82% on average per year.
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.
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.

Health Analysis for NYSE:DT

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DT has achieved 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.
The Altman-Z score of DT (8.53) 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.

Profitability Examination 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:

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

Why is NYSE:DT a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:DT currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

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 46.91. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 46.48, a Stop Loss order could be placed below this zone.

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

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.