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

Last update: Mar 25, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if DYNATRACE INC (NYSE:DT) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted DYNATRACE INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

A Closer Look at Growth for 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:

The Earnings Per Share has grown by an impressive 47.56% over the past year.
DT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 65.28% yearly.
Looking at the last year, DT shows a very strong growth in Revenue. The Revenue has grown by 24.39%.
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 20.42% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 18.91% on average over the next years. This is quite good.

Understanding NYSE:DT's Health Score

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:DT, the assigned 7 for health provides valuable insights:

DT has an Altman-Z score of 8.19. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.19, DT belongs to the best of the industry, outperforming 82.01% of the companies in the same industry.
DT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

Profitability Analysis for NYSE:DT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:DT has achieved a 7:

With an excellent Return On Assets value of 6.57%, DT belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
DT has a better Return On Equity (10.29%) than 85.61% of its industry peers.
The Return On Invested Capital of DT (4.49%) is better than 77.70% of its industry peers.
The 3 year average ROIC (3.89%) for DT is below the current ROIC(4.49%), indicating increased profibility in the last year.
The Profit Margin of DT (14.44%) is better than 86.69% of its industry peers.
In the last couple of years the Profit Margin of DT has grown nicely.
Looking at the Operating Margin, with a value of 9.16%, DT belongs to the top of the industry, outperforming 80.58% of the companies in the same industry.
DT has a better Gross Margin (81.36%) than 86.33% of its industry peers.

How do we evaluate the setup 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 7:

DT has a bad technical rating, but it does show a decent setup pattern. 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 46.34. Right above this resistance zone may be a good entry point.

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.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.