NYSE:DT qualifies as a high growth stock and is consolidating.

Last update: Jul 2, 2024

In this article we will dive into DYNATRACE INC (NYSE:DT) as a possible candidate for growth investing. Investors should always do their own research, but we noticed DYNATRACE INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

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 8 for growth:

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!
The Revenue has been growing by 27.12% on average over the past years. This is a very strong growth!
Based on estimates for the next years, DT will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.23% on average per year.
The Revenue is expected to grow by 16.89% on average over the next years. This is quite good.

What does the Health looks like for NYSE:DT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DT has received a 6 out of 10:

An Altman-Z score of 6.35 indicates that DT is not in any danger for bankruptcy at the moment.
DT has a better Altman-Z score (6.35) than 75.00% 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.

What does the Profitability looks like for 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:

DT's Return On Assets of 4.54% is fine compared to the rest of the industry. DT outperforms 77.17% of its industry peers.
DT's Return On Equity of 7.67% is fine compared to the rest of the industry. DT outperforms 76.45% of its industry peers.
The Return On Invested Capital of DT (4.74%) is better than 75.36% of its industry peers.
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.
DT's Profit Margin of 10.81% is fine compared to the rest of the industry. DT outperforms 78.99% of its industry peers.
Looking at the Operating Margin, with a value of 9.01%, DT belongs to the top of the industry, outperforming 80.07% of the companies in the same industry.
DT has a Gross Margin of 81.37%. This is amongst the best in the industry. DT outperforms 85.51% of its industry peers.
In the last couple of years the Gross Margin of DT has grown nicely.

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 support zone below the current price at 44.37, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for DT in the last couple of days, which is a good sign.

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

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

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

Keep in mind

This article should in no way be interpreted as advice. 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.