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Why the Market Dipped But Commvault Systems (CVLT) Gained Today

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Commvault Systems (CVLT - Free Report) closed at $116.54 in the latest trading session, marking a +1.82% move from the prior day. This change outpaced the S&P 500's 0.04% loss on the day. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.12%.

The data-management software company's stock has climbed by 3.37% in the past month, exceeding the Computer and Technology sector's loss of 2.27% and lagging the S&P 500's gain of 4.15%.

Market participants will be closely following the financial results of Commvault Systems in its upcoming release. It is anticipated that the company will report an EPS of $0.75, marking a 4.17% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $214.47 million, indicating an 8.23% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.38 per share and revenue of $910 million, which would represent changes of +13.42% and +8.43%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Commvault Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Commvault Systems is carrying a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Commvault Systems is presently being traded at a Forward P/E ratio of 33.89. This denotes a premium relative to the industry's average Forward P/E of 27.06.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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