Big Money Loving Dynatrace’s Comeback Story

DT provides organizations with a technology security platform that spans cloud environments and geographical regions. Most of its revenue comes from software and related services, which heavily focus on AI capabilities. As tech modernization continues to unfold globally, Dynatrace could be well positioned for future growth.

Financially, DT’s fiscal second quarter reflected ample growth. Revenue increased 19%, to $418.1 million from $351.7 million on a year-over-year basis. This led the company to increase full-year revenue guidance to an upper bound of nearly $1.7 billion, with third-quarter revenue expected to be in the $425-$428 million range. The consensus expectation for quarterly per-share earnings is $0.33, which would be a 3.1% year-over-year increase.

Big Money has noticed this turnaround.

It’s no wonder DT shares are up 21.2% in the last six months – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Boosts Dynatrace

Institutional volumes reveal plenty. In the last six months, DT has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in DT shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Dynatrace.

Dynatrace Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DT has had strong sales and earnings growth:

• 3-year sales growth rate (+26.7%)
• 3-year earnings growth rate (+37.3%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +13.6%.

Now it makes sense why the stock has been powering to new heights. DT is once again delivering strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Dynatrace has been a top-rated stock at MAPsignals in the past, and now it’s roaring back again. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year, even with a dip in the middle, and there could be more growth on the horizon. The blue bars below show when DT was a top pick…typically making shares jump:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Dynatrace Price Prediction

The DT rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in DT at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.