Exploring the Growth Potential of NYSE:DT as It Nears a Breakout.

Last update: Apr 23, 2024

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.

ChartMill's Evaluation of Growth

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 47.56%, 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 65.28% on average per year.
DT shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.39%.
The Revenue has been growing by 23.82% on average over the past years. This is a very strong growth!
Based on estimates for the next years, DT will show a very strong growth in Earnings Per Share. The EPS will grow by 20.42% on average per year.
The Revenue is expected to grow by 18.91% on average over the next years. This is quite good.

Understanding NYSE:DT's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:DT has earned a 7 out of 10:

An Altman-Z score of 8.07 indicates that DT is not in any danger for bankruptcy at the moment.
DT has a better Altman-Z score (8.07) than 82.85% 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 Analysis 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:

The Return On Assets of DT (6.57%) is better than 84.31% of its industry peers.
DT's Return On Equity of 10.29% is amongst the best of the industry. DT outperforms 84.67% of its industry peers.
The Return On Invested Capital of DT (4.49%) is better than 78.47% of its industry peers.
The last Return On Invested Capital (4.49%) for DT is above the 3 year average (3.89%), which is a sign of increasing profitability.
DT's Profit Margin of 14.44% is amongst the best of the industry. DT outperforms 85.77% of its industry peers.
In the last couple of years the Profit Margin of DT has grown nicely.
DT has a Operating Margin of 9.16%. This is amongst the best in the industry. DT outperforms 81.39% of its industry peers.
DT has a better Gross Margin (81.36%) than 86.50% of its industry peers.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:DT exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

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 support zone below the current price at 43.77, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Keep in mind

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.