Why NYSE:DT Is a Standout High-Growth Stock in a Consolidation Phase.

Last update: Dec 11, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if DYNATRACE INC (NYSE:DT) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted DYNATRACE INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Exploring NYSE:DT's Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:DT, the assigned 8 reflects its growth potential:

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
DT shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.57%.
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.
The Earnings Per Share is expected to grow by 17.23% on average over the next years. This is quite good.
Based on estimates for the next years, DT will show a quite strong growth in Revenue. The Revenue will grow by 16.89% on average per year.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:DT was assigned a score of 6 for health:

DT has an Altman-Z score of 9.32. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DT (9.32) is better than 78.78% 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.

Profitability Assessment of 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:

DT has a Return On Assets of 4.90%. This is in the better half of the industry: DT outperforms 75.18% of its industry peers.
The Return On Equity of DT (7.62%) is better than 75.54% of its industry peers.
DT has a better Return On Invested Capital (5.14%) than 74.46% of its industry peers.
The 3 year average ROIC (4.30%) for DT is below the current ROIC(5.14%), indicating increased profibility in the last year.
The Profit Margin of DT (10.44%) is better than 77.34% of its industry peers.
DT has a better Operating Margin (9.49%) than 76.62% of its industry peers.
The Gross Margin of DT (81.30%) is better than 84.53% of its industry peers.
DT's Gross Margin has improved in the last couple of years.

How does the Setup look for NYSE:DT

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 7:

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. 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 55.30, a Stop Loss order could be placed below this zone.

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.

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.