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Commvault Systems (CVLT) Outperforms Broader Market: What You Need to Know

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In the latest trading session, Commvault Systems (CVLT - Free Report) closed at $153.67, marking a +1.13% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.49%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 1.22%.

The the stock of data-management software company has fallen by 14.89% in the past month, lagging the Computer and Technology sector's loss of 12.07% and the S&P 500's loss of 8.15%.

Analysts and investors alike will be keeping a close eye on the performance of Commvault Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.91, marking a 15.19% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $262.8 million, up 17.69% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.53 per share and revenue of $975.08 million. These totals would mark changes of +18.46% and +16.18%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Commvault Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Commvault Systems presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Commvault Systems currently has a Forward P/E ratio of 43.04. This indicates a premium in contrast to its industry's Forward P/E of 25.74.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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