NYSE:DT: a strong growth stock preparing for the next leg up?.

Last update: Sep 2, 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.

Analyzing Growth Metrics

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:

DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.00%, which is quite good.
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 22.27%.
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.
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.
DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.89% yearly.

A Closer Look at Health for NYSE:DT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:DT scores a 7 out of 10:

DT has an Altman-Z score of 8.28. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
DT's Altman-Z score of 8.28 is amongst the best of the industry. DT outperforms 81.27% 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.

Profitability Examination 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 6 for profitability:

DT's Return On Assets of 4.76% is fine compared to the rest of the industry. DT outperforms 76.68% of its industry peers.
DT's Return On Equity of 7.50% is fine compared to the rest of the industry. DT outperforms 75.97% of its industry peers.
DT has a Return On Invested Capital of 4.89%. This is in the better half of the industry: DT outperforms 75.97% of its industry peers.
The 3 year average ROIC (4.30%) for DT is below the current ROIC(4.89%), indicating increased profibility in the last year.
DT has a Profit Margin of 10.36%. This is in the better half of the industry: DT outperforms 78.80% of its industry peers.
The Operating Margin of DT (9.13%) is better than 78.09% of its industry peers.
The Gross Margin of DT (81.37%) is better than 84.45% of its industry peers.
In the last couple of years the Gross Margin of DT has grown nicely.

Why is NYSE:DT a 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:

DT has an excellent technical rating and also presents 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 50.63. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 50.61, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

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.