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Here's Why Dynatrace (DT) Fell More Than Broader Market
DynatraceDynatrace(US:DT) ZACKSยท2025-09-16 23:15

Company Performance - Dynatrace (DT) stock decreased by 1.63% to $47.82, underperforming the S&P 500 which fell by 0.13% [1] - Prior to the recent trading session, Dynatrace shares had declined by 0.47%, lagging behind the Computer and Technology sector's gain of 6.17% and the S&P 500's gain of 2.71% [1] Upcoming Financial Results - The upcoming EPS for Dynatrace is projected at $0.41, reflecting a 10.81% increase compared to the same quarter last year [2] - Revenue is estimated to be $487 million, indicating a growth of 16.47% compared to the corresponding quarter of the previous year [2] Annual Estimates - For the annual period, earnings are anticipated to be $1.6 per share and revenue is expected to reach $1.98 billion, representing increases of +15.11% and +16.41% respectively from the previous year [3] Analyst Estimates and Stock Performance - Recent changes to analyst estimates for Dynatrace are crucial as they indicate near-term business trends, with positive revisions seen as favorable for the business outlook [3][4] - The Zacks Rank system, which incorporates estimate changes, has a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [5] Valuation Metrics - Dynatrace is currently trading at a Forward P/E ratio of 30.34, which is a premium compared to the industry average of 17.22 [6] - The PEG ratio for Dynatrace stands at 2.37, compared to the industry average PEG ratio of 2.05 [6] Industry Context - The Computers - IT Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 107, placing it in the top 44% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]