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

Last update: Oct 6, 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.

Growth Assessment of 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:

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.
The Revenue has grown by 24.03% in the past year. This is a very strong growth!
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.

A Closer Look at Health for NYSE:DT

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:DT was assigned a score of 6 for health:

An Altman-Z score of 8.59 indicates that DT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.59, DT belongs to the top of the industry, outperforming 85.77% of the companies in the same industry.
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.

What does the Profitability looks like for NYSE:DT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:DT was assigned a score of 7 for profitability:

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's Return On Equity of 8.45% is amongst the best of the industry. DT outperforms 86.12% of its industry peers.
DT has a Return On Invested Capital of 4.33%. This is amongst the best in the industry. DT outperforms 80.43% 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.
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 has a better Operating Margin (8.84%) than 81.49% of its industry peers.
DT has a better Gross Margin (80.93%) than 86.12% of its industry peers.

How does the Setup look for NYSE:DT

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple 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 resistance zone just above the current price starting at 47.52. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 46.85, 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

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.