Dynatrace (DT) is the kind of company that thrives as the tech world gets more complicated, observes Luke Downey, editor of The Big Money Report — and a participant at the MoneyShow Last Vegas, Sept. 12-14. Learn more here.
The firm makes a “software intelligence platform” for some of the biggest companies in the world. Its customer list reads like a “who’s who” of the corporate world: Samsung, Johnson & Johnson, JP Morgan Chase, Procter & Gamble, Bank of America, UnitedHealth, ExxonMobil, MasterCard, Salesforce, Target, Starbucks, and hundreds more.
Dynatrace’s platform helps its customers manage their complex software programs… by automating cloud-based operations… gathering all the data a customer could want… and troubleshooting across multiple applications. It also comes with significant security features.
Dynatrace is a relatively young company — it went public barely two years ago. But it’s already riding a bunch of big tech trends, including cloud computing, Big Data and artificial intelligence (AI).
More importantly, it’s capitalizing on major demand from some of the biggest companies in the world. The bigger these companies get, the more help they need managing their software systems and applications. Plus, there’s a ton of data to track and analyze.
Digging into the fundamentals, Dynatrace’s sales show the “stairway to heaven” uptrend I always look for. After growing by just 8% in 2019, the company hit its stride the past couple years, growing revenue by 26.7% in 2020 and 28.8% in 2021 (its 2022 fiscal year has already started).
More importantly, the latest results show Dynatrace’s growth rate is accelerating. During its most recent earnings announcement, the company said it expects full-year revenue to easily top $900 million — an increase of just under 30% from last year.
Put simply, this company makes a fantastic tech platform that big corporate customers are willing to pay a lot for. And Big Money investors are starting to notice. In fact, our Big Money chart shows 10 buy signals since the start of June — along with a handful of signals earlier this year.
By itself, this data looks promising. But what really gets me excited about Dynatrace is that it’s starting to pop up in the Top Ranked Report — my most exclusive analysis that looks for a combination of Big Money buying activity and top-notch financial results.
In short, Dynatrace is one of the few stocks that’s firing on all cylinders. It’s growing like crazy and getting bought by big institutions. My Top Ranked Report shows six buy signals for Dynatrace in just two months. That’s a massively bullish sign. It’s likely the start of a much longer uptrend.
The stock is up about 50% already in 2021 — but based on the Big Money buying and recent breakout above the $60 level this stock could generate a triple-digit gain for us over the next couple of years. Buy up to $66.