NYSE:DT qualifies as a high growth stock and is consolidating.

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.

A Closer Look at 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:

• DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.79%, 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 20.57%.
• DT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.12% yearly.
• Based on estimates for the next years, DT will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.14% on average per year.
• The Revenue is expected to grow by 16.45% on average over the next years. This is quite good.

Health Assessment of NYSE:DT

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:DT, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 9.00 indicates that DT is not in any danger for bankruptcy at the moment.
• DT has a better Altman-Z score (9.00) than 77.29% 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.

A Closer Look at Profitability for NYSE:DT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:DT scores a 6 out of 10:

• DT has a better Return On Assets (4.90%) than 75.09% of its industry peers.
• The Return On Equity of DT (7.62%) is better than 75.09% of its industry peers.
• DT has a Return On Invested Capital of 5.14%. This is in the better half of the industry: DT outperforms 73.99% 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.
• Looking at the Profit Margin, with a value of 10.44%, DT is in the better half of the industry, outperforming 77.29% of the companies in the same industry.
• DT's Operating Margin of 9.49% is fine compared to the rest of the industry. DT outperforms 76.19% of its industry peers.
• DT's Gross Margin of 81.30% is amongst the best of the industry. DT outperforms 84.25% of its industry peers.
• DT's Gross Margin has improved in the last couple of years.

Why is NYSE:DT a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:DT exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Although the technical rating is only medium, DT does present a nice setup opportunity. 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 a resistance zone just above the current price starting at 54.93. Right above this resistance zone may be a good entry point. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

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.