Dynatrace (DT) is a Great Momentum Stock: Should You Buy?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Analysis: Dynatrace (DT) - Dynatrace currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [4]. - Over the past week, DT shares increased by 1.39%, outperforming the Zacks Computers - IT Services industry, which rose by 0.32% [6]. - In a longer timeframe, DT shares have risen by 10.52% over the past quarter and 18.34% over the last year, while the S&P 500 only moved 0.05% and 13.85%, respectively [7]. - The average 20-day trading volume for DT is 2,942,191 shares, indicating a bullish sign with rising stock prices [8]. Earnings Outlook - In the last two months, 8 earnings estimates for DT have been revised upwards, while 3 have been revised downwards, leading to an increase in the consensus estimate from $1.54 to $1.58 [10]. - For the next fiscal year, there have been 3 upward revisions and 5 downward revisions in earnings estimates [10]. Conclusion - Given the strong momentum indicators and positive earnings outlook, Dynatrace is recommended as a stock to consider for near-term investment opportunities [11].