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NYSE:DT, a strong growth stock, setting up for a breakout.

By Mill Chart

Last update: May 14, 2024

In this article we will dive into DYNATRACE INC (NYSE:DT) as a possible candidate for growth investing. Investors should always do their own research, but we noticed DYNATRACE INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Deciphering NYSE:DT's Growth Rating

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. NYSE:DT has received a 9 out of 10:

  • The Earnings Per Share has grown by an impressive 47.56% over the past year.
  • DT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 65.28% yearly.
  • The Revenue has grown by 24.39% in the past year. This is a very strong growth!
  • Measured over the past years, DT shows a very strong growth in Revenue. The Revenue has been growing by 23.82% on average per year.
  • Based on estimates for the next years, DT will show a very strong growth in Earnings Per Share. The EPS will grow by 21.13% on average per year.
  • DT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.62% yearly.

ChartMill's Evaluation of Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:DT has earned a 7 out of 10:

  • DT has an Altman-Z score of 8.17. 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 8.17, DT belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
  • 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 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:

  • The Return On Assets of DT (6.57%) is better than 84.06% of its industry peers.
  • DT has a Return On Equity of 10.29%. This is amongst the best in the industry. DT outperforms 84.06% of its industry peers.
  • DT's Return On Invested Capital of 4.49% is fine compared to the rest of the industry. DT outperforms 77.54% of its industry peers.
  • The 3 year average ROIC (3.89%) for DT is below the current ROIC(4.49%), indicating increased profibility in the last year.
  • DT's Profit Margin of 14.44% is amongst the best of the industry. DT outperforms 85.14% of its industry peers.
  • DT's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 9.16%, DT belongs to the best of the industry, outperforming 81.52% of the companies in the same industry.
  • DT's Gross Margin of 81.36% is amongst the best of the industry. DT outperforms 85.87% 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 8 out of 10:

Although the technical rating is bad, DT does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 45.52, 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.

More Strong Growth stocks can be found in our Strong Growth screener.

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

Our latest full technical report of DT contains the most current technical analsysis.

Keep in mind

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.

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DYNATRACE INC

NYSE:DT (5/24/2024, 7:23:21 PM)

After market: 46.93 0 (0%)

46.93

-0.67 (-1.41%)

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