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

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether DYNATRACE INC (NYSE:DT) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but DYNATRACE INC has surfaced on our radar for growth with base formation, warranting further examination.

Unpacking NYSE:DT's Growth Rating

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 13.22% over the past year.
• DT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.96% yearly.
• DT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.80%.
• DT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.12% yearly.
• DT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.14% yearly.
• Based on estimates for the next years, DT will show a quite strong growth in Revenue. The Revenue will grow by 17.41% on average per year.

How do we evaluate the Health for 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 7 for health provides valuable insights:

• DT has an Altman-Z score of 9.94. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 9.94, DT belongs to the top of the industry, outperforming 81.45% of the companies in the same industry.
• DT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

Profitability Assessment of NYSE:DT

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:DT, the assigned 7 is noteworthy for profitability:

• With an excellent Return On Assets value of 12.91%, DT belongs to the best of the industry, outperforming 90.18% of the companies in the same industry.
• DT has a better Return On Equity (18.89%) than 86.91% of its industry peers.
• With a decent Return On Invested Capital value of 4.71%, DT is doing good in the industry, outperforming 74.18% of the companies in the same industry.
• The 3 year average ROIC (4.30%) for DT is below the current ROIC(4.71%), indicating increased profibility in the last year.
• DT has a better Profit Margin (29.51%) than 93.82% of its industry peers.
• The Operating Margin of DT (9.79%) is better than 77.09% of its industry peers.
• DT has a Gross Margin of 81.22%. This is amongst the best in the industry. DT outperforms 84.00% of its industry peers.
• In the last couple of years the Gross Margin of DT has grown nicely.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:DT scores a 7 out of 10:

Besides having an excellent technical rating, DT also presents 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 59.87, a Stop Loss order could be placed below this zone.

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

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

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.