News Image

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

By Mill Chart

Last update: Oct 12, 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.

What does the Growth looks like for NYSE:DT

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:DT has received 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.
  • The Revenue has grown by 24.03% in the past year. This is a very strong growth!
  • 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.

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 8.79 indicates that DT is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 8.79, DT belongs to the top of the industry, outperforming 86.12% 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.

Evaluating Profitability: 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:

  • The Return On Assets of DT (5.28%) is better than 86.48% of its industry peers.
  • DT has a better Return On Equity (8.45%) than 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.
  • In the last couple of years the Profit Margin of DT has grown nicely.
  • The Operating Margin of DT (8.84%) is better than 81.49% of its industry peers.
  • DT has a better Gross Margin (80.93%) than 86.12% of its industry peers.

Why is NYSE:DT a setup?

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:

Besides having an excellent technical rating, DT also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 47.87, 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.

Check the latest full technical report of DT for a complete technical analysis.

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.

Back