Why NYSE:DT Is a Promising High-Growth Stock in the Midst of Consolidation.

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

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:DT has received a 8 out of 10:

• The Earnings Per Share has grown by an nice 15.79% 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 23.48% 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.
• 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.

Assessing Health Metrics for NYSE:DT

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:DT has earned a 6 out of 10:

• An Altman-Z score of 8.63 indicates that DT is not in any danger for bankruptcy at the moment.
• DT has a Altman-Z score of 8.63. This is in the better half of the industry: DT outperforms 75.63% 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.

Assessing Profitability for NYSE:DT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:DT, the assigned 6 is a significant indicator of profitability:

• DT has a Return On Assets of 4.76%. This is in the better half of the industry: DT outperforms 75.27% of its industry peers.
• DT has a Return On Equity of 7.50%. This is in the better half of the industry: DT outperforms 75.27% 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 75.63% 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.
• With a decent Profit Margin value of 10.36%, DT is doing good in the industry, outperforming 78.14% of the companies in the same industry.
• DT has a Operating Margin of 9.13%. This is in the better half of the industry: DT outperforms 77.42% of its industry peers.
• The Gross Margin of DT (81.37%) is better than 84.59% of its industry peers.
• In the last couple of years the Gross Margin of DT has grown nicely.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:DT currently has a 8 as setup rating:

DT has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 52.95, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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

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

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

Keep in mind

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.