Dynatrace May Gain 61%. Is this Stock a Strong-Buy?
Stock markets saw lots of highs and lows during the last few months. The U.S. presidential elections and surging pandemic caused lots of uproars. However, America has a new president, and investors are hopeful that the new stimulus will help the economy. Still, it’s hard to say, which stocks will manage to survive the global crisis. Investors need to be especially careful considering the turbulent times. Fortunately, analysts offer advice about the shares, which have the potential to weather the pandemic and come out with gains.
Dynatrace is one of such companies. This AI firm provides cloud platforms that manage and monitor business software. Dynatrace’s AI can handle the infrastructure on system architecture, as well as cloud software, making it a one-stop tool for network and minimizing system strain.
During the covid-19 crisis, Dynatrace’s products have grown in popularity. Most of the offices made a shift toward remote work, using virtual desktops. So, strong systems management has become a valuable commodity. DT shares have shown investors a healthy rebound after bottoming out in mid-March. The stock has surged forward by 90% since March lows.
Needham’s analyst Jack Andrews stated that Dynatrace is the right company in the right niche at the right time. He gave this stock a Buy rating. Andrews’ $50 price target indicates a one-year upside of 61%.
What about PulteGroup stock?
PulteGroup is the third-largest home construction company in the United States. It usually brings in approximately $10 billion in annual revenues. During the last three years, the economic expansion was good for the company.
However, after the coronavirus pandemic hit during the first quarter of the year, PulteGroup’s earnings and revenues tumbled down. Still, the first quarter is historically the firm’s slowest of the year, with the top and bottom lines both jumping through Q4. PulteGroup continued to follow that pattern. Thus far, quarterly results have consistently surpassed expectations in 2020, showing with year-over-year gains. In the third quarter, EPS was $1.34, reaching the highest point in over two years, on revenues of $2.95 billion.
Even though the share price plummeted down in February/March, along with the overall markets, the stock has been gaining since. PulteGroup hit bottom on March 23. Despite that, over the past seven and a half months, the stock has skyrocketed by 148%.
RBC Capital’s analyst Michael Dahl thinks that this stock is definitely a strong buy. He sat his price target at $53, suggesting an upside of 22% for the coming year. The stock’s currently trading at $43.12. However, $55.67 average price target implies a gain of 22.5% over the year.
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