Back to top

Image: Bigstock

Are Computer and Technology Stocks Lagging CommVault Systems (CVLT) This Year?

Read MoreHide Full Article

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Commvault Systems (CVLT - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Commvault Systems is a member of the Computer and Technology sector. This group includes 618 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Commvault Systems is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for CVLT's full-year earnings has moved 18.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, CVLT has returned 39.3% so far this year. In comparison, Computer and Technology companies have returned an average of 15.9%. As we can see, Commvault Systems is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, Alphabet (GOOGL - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 26%.

The consensus estimate for Alphabet's current year EPS has increased 12.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Commvault Systems belongs to the Computer - Software industry, a group that includes 35 individual companies and currently sits at #68 in the Zacks Industry Rank. This group has gained an average of 9.8% so far this year, so CVLT is performing better in this area.

In contrast, Alphabet falls under the Internet - Services industry. Currently, this industry has 39 stocks and is ranked #67. Since the beginning of the year, the industry has moved +22%.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Commvault Systems and Alphabet as they could maintain their solid performance.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

CommVault Systems, Inc. (CVLT) - free report >>

Alphabet Inc. (GOOGL) - free report >>

Published in