DYNATRACE INC (NYSE:DT), a strong growth stock, setting up for a breakout.

Last update: Mar 26, 2025

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.

Growth Assessment of 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. DT has received a 8 out of 10:

The Earnings Per Share has grown by an nice 13.22% 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.80%.
The Revenue has been growing by 27.12% on average over the past years. This is a very strong growth!
Based on estimates for the next years, DT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.40% on average per year.
DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.39% yearly.

A Closer Look at Health for DT

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. DT has achieved a 7 out of 10:

DT has an Altman-Z score of 8.62. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
DT has a better Altman-Z score (8.62) than 80.65% 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 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. DT scores a 7 out of 10:

DT has a Return On Assets of 12.91%. This is amongst the best in the industry. DT outperforms 88.17% of its industry peers.
DT has a better Return On Equity (18.89%) than 84.95% of its industry peers.
The Return On Invested Capital of DT (4.71%) is better than 74.91% of its industry peers.
The 3 year average ROIC (4.30%) for DT is below the current ROIC(4.71%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 29.51%, DT belongs to the best of the industry, outperforming 92.83% of the companies in the same industry.
DT's Operating Margin of 9.79% is fine compared to the rest of the industry. DT outperforms 76.70% of its industry peers.
With an excellent Gross Margin value of 81.22%, DT belongs to the best of the industry, outperforming 84.95% of the companies in the same industry.
DT's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for DT?

ChartMill 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, DT exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Although the technical rating is bad, DT does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 51.19. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for DT in the last couple of days, which is a good sign.

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

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

Keep in mind

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.