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.

How We Gauge Growth for NYSE:DT

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:DT has earned a 9 for growth:

• The Earnings Per Share has grown by an impressive 52.00% over the past year.
• Measured over the past years, DT shows a very strong growth in Earnings Per Share. The EPS has been growing by 65.30% on average per year.
• The Revenue has grown by 24.67% in the past year. This is a very strong growth!
• The Revenue has been growing by 23.82% on average over the past years. This is a very strong growth!
• DT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.42% yearly.
• Based on estimates for the next years, DT will show a quite strong growth in Revenue. The Revenue will grow by 18.21% on average per year.

Assessing Health Metrics for NYSE:DT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:DT has earned a 6 out of 10:

• DT has an Altman-Z score of 9.87. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of DT (9.87) is better than 87.05% of its industry peers.
• DT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

Profitability Examination for NYSE:DT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:DT, the assigned 7 is a significant indicator of profitability:

• DT has a Return On Assets of 6.09%. This is amongst the best in the industry. DT outperforms 86.69% of its industry peers.
• With an excellent Return On Equity value of 9.40%, DT belongs to the best of the industry, outperforming 86.33% of the companies in the same industry.
• DT has a Return On Invested Capital of 4.68%. This is amongst the best in the industry. DT outperforms 80.58% of its industry peers.
• The 3 year average ROIC (3.89%) for DT is below the current ROIC(4.68%), indicating increased profibility in the last year.
• The Profit Margin of DT (13.06%) is better than 87.41% of its industry peers.
• DT's Profit Margin has improved in the last couple of years.
• DT has a better Operating Margin (9.49%) than 81.65% of its industry peers.
• DT has a Gross Margin of 81.33%. This is amongst the best in the industry. DT outperforms 87.05% of its industry peers.

How do we evaluate the setup for NYSE:DT?

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 and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 51.75, a Stop Loss order could be placed below this zone.

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

Disclaimer

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.