NYSE:DT—A High-Growth Stock Gearing Up for Its Next Upward Move.

Last update: Oct 21, 2024

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.

How We Gauge Growth for NYSE:DT

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:

The Earnings Per Share has grown by an nice 20.00% over the past year.
Measured over the past years, DT shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.96% on average per year.
Looking at the last year, DT shows a very strong growth in Revenue. The Revenue has grown by 22.27%.
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.

Unpacking NYSE:DT's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DT has achieved a 6 out of 10:

An Altman-Z score of 8.91 indicates that DT is not in any danger for bankruptcy at the moment.
DT has a Altman-Z score of 8.91. This is in the better half of the industry: DT outperforms 79.64% 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.

Evaluating Profitability: 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 6:

With a decent Return On Assets value of 4.76%, DT is doing good in the industry, outperforming 75.36% of the companies in the same industry.
With a decent Return On Equity value of 7.50%, DT is doing good in the industry, outperforming 76.07% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.89%, DT is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
The 3 year average ROIC (4.30%) for DT is below the current ROIC(4.89%), indicating increased profibility in the last year.
The Profit Margin of DT (10.36%) is better than 77.86% of its industry peers.
With a decent Operating Margin value of 9.13%, DT is doing good in the industry, outperforming 77.86% of the companies in the same industry.
DT has a better Gross Margin (81.37%) than 83.93% 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?

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 8 as its setup rating, indicating its current consolidation status.

DT has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 54.18, a Stop Loss order could be placed below this zone.

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

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

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.