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

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.

Unpacking NYSE:DT's Growth Rating

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 8 out of 10:

• DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.00%, which is quite impressive.
• The Earnings Per Share has been growing by 23.96% on average over the past years. This is a very strong growth
• Looking at the last year, DT shows a very strong growth in Revenue. The Revenue has grown by 23.47%.
• DT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.12% yearly.
• The Earnings Per Share is expected to grow by 17.23% on average over the next years. This is quite good.
• The Revenue is expected to grow by 16.89% on average over the next years. This is quite good.

How do we evaluate the Health 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 6.25 indicates that DT is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 6.25, DT is doing good in the industry, outperforming 74.20% 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.

Profitability Examination 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:

• DT's Return On Assets of 4.54% is fine compared to the rest of the industry. DT outperforms 77.03% of its industry peers.
• Looking at the Return On Equity, with a value of 7.67%, DT is in the better half of the industry, outperforming 76.68% of the companies in the same industry.
• DT has a better Return On Invested Capital (4.74%) than 76.33% of its industry peers.
• The 3 year average ROIC (4.30%) for DT is below the current ROIC(4.74%), indicating increased profibility in the last year.
• The Profit Margin of DT (10.81%) is better than 79.51% of its industry peers.
• DT has a Operating Margin of 9.01%. This is amongst the best in the industry. DT outperforms 80.21% of its industry peers.
• 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.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:DT has a 9 as its setup rating, indicating its current consolidation status.

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 44.97. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 44.12, 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.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

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

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.