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Dynatrace (DT) ended the recent trading session at $47.59, demonstrating a -0.77% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.64%. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, lost 0.74%.
Prior to today's trading, shares of the software intellegence company had gained 14.16% over the past month. This has outpaced the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 0.38% in that time.
Investors will be eagerly watching for the performance of Dynatrace in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 14, 2025. The company is predicted to post an EPS of $0.30, indicating constancy compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $434.56 million, showing a 14.1% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for Dynatrace. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.27% downward. Dynatrace presently features a Zacks Rank of #3 (Hold).
Investors should also note Dynatrace's current valuation metrics, including its Forward P/E ratio of 31.33. This indicates a premium in contrast to its industry's Forward P/E of 20.23.
Meanwhile, DT's PEG ratio is currently 2.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 43% of all 250+ industries.