DYNATRACE INC (NYSE:DT) – A Strong Growth Stock with Technical Breakout Potential

DYNATRACE INC (NYSE:DT) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a promising price pattern, making it worth a closer look for growth-oriented investors.

Fundamental Strengths

• Growth: DT has demonstrated strong revenue and earnings growth, with revenue increasing by 18.74% over the past year and EPS growing by 16.67%. Future earnings are expected to rise by 17.51% annually.
• Profitability: The company boasts an impressive profit margin of 28.47%, outperforming 93% of its software industry peers. Its operating margin (10.57%) is also above average.
• Financial Health: With no debt and an Altman-Z score of 7.27, DT maintains a strong balance sheet, reducing bankruptcy risk.
• Valuation: While the P/E ratio of 38.98 appears high, it is relatively cheaper than 65% of its industry peers. The strong growth outlook may justify the premium.

Technical Setup

• Trend Strength: Both short-term and long-term trends are positive, with the stock trading near the upper end of its recent range.
• Support & Resistance: Key support lies around $54.27-$54.46, while resistance is seen near $55.67. A breakout above this level could signal further upside.
• Recent Signal: A Pocket Pivot pattern suggests accumulation, with volume supporting upward price movement.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria and is updated daily.
For a deeper analysis, review the full fundamental report and technical report.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own research before making investment decisions.