Why NYSE:DT Is a Promising High-Growth Stock in the Midst of Consolidation.

In this article, we'll take a closer look at DYNATRACE INC (NYSE:DT) as a potential candidate for growth investing. While it's important for investors to conduct their own research, DYNATRACE INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Growth Analysis 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 9 out of 10:

• DT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.00%, which is quite impressive.
• Measured over the past years, DT shows a very strong growth in Earnings Per Share. The EPS has been growing by 65.28% 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!
• Based on estimates for the next years, DT will show a very strong growth in Earnings Per Share. The EPS will grow by 20.42% on average per year.
• Based on estimates for the next years, DT will show a quite strong growth in Revenue. The Revenue will grow by 18.91% on average per year.

A Closer Look at Health for NYSE:DT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:DT scores a 6 out of 10:

• DT has an Altman-Z score of 10.40. This indicates that DT is financially healthy and has little risk of bankruptcy at the moment.
• DT has a better Altman-Z score (10.40) than 88.26% 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.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:DT has earned a 7 out of 10:

• Looking at the Return On Assets, with a value of 6.09%, DT belongs to the top of the industry, outperforming 86.83% of the companies in the same industry.
• The Return On Equity of DT (9.40%) is better than 85.77% of its industry peers.
• With an excellent Return On Invested Capital value of 4.68%, DT belongs to the best of the industry, outperforming 80.07% of the companies in the same industry.
• The last Return On Invested Capital (4.68%) for DT is above the 3 year average (3.89%), which is a sign of increasing profitability.
• DT has a Profit Margin of 13.06%. This is amongst the best in the industry. DT outperforms 87.54% of its industry peers.
• DT's Profit Margin has improved in the last couple of years.
• DT's Operating Margin of 9.49% is amongst the best of the industry. DT outperforms 82.21% of its industry peers.
• Looking at the Gross Margin, with a value of 81.31%, DT belongs to the top of the industry, outperforming 87.54% of the companies in the same industry.

How does the Setup look for NYSE:DT

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:DT is 8:

DT has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 54.83. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 54.12, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for DT in the last couple of days, which is a good sign.

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

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.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.