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

Last update: Jun 4, 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.

Exploring NYSE:DT's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:DT has achieved a 9 out of 10:

The Earnings Per Share has grown by an impressive 25.00% over the past year.
The Earnings Per Share has been growing by 23.96% on average over the past years. This is a very strong growth
The Revenue has grown by 23.47% 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 27.12% on average per year.
DT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.01% yearly.
Based on estimates for the next years, DT will show a quite strong growth in Revenue. The Revenue will grow by 17.89% on average per year.

Evaluating Health: 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:

DT has an Altman-Z score of 6.38. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DT (6.38) is better than 76.09% of its industry peers.
DT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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:

The Return On Assets of DT (4.54%) is better than 77.54% of its industry peers.
DT's Return On Equity of 7.67% is fine compared to the rest of the industry. DT outperforms 77.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.74%, DT is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
The last Return On Invested Capital (4.74%) for DT is above the 3 year average (4.30%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 10.81%, DT is in the better half of the industry, outperforming 78.99% of the companies in the same industry.
DT's Operating Margin of 9.01% is amongst the best of the industry. DT outperforms 80.80% of its industry peers.
DT has a better Gross Margin (81.37%) than 85.87% of its industry peers.
DT's Gross Margin has improved in the last couple of years.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various 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 support zone below the current price at 43.77, a Stop Loss order could be placed below this zone.

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

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.