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Is CommVault Systems (CVLT) Outperforming Other Computer and Technology Stocks This Year?

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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? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Commvault Systems is one of 608 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Commvault Systems is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for CVLT's full-year earnings has moved 7.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, CVLT has gained about 24% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 0.2% on average. As we can see, Commvault Systems is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, Credo Technology Group Holding Ltd. (CRDO - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 8.6%.

In Credo Technology Group Holding Ltd.'s case, the consensus EPS estimate for the current year increased 17.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Commvault Systems belongs to the Computer - Software industry, a group that includes 30 individual stocks and currently sits at #49 in the Zacks Industry Rank. On average, stocks in this group have gained 8.2% this year, meaning that CVLT is performing better in terms of year-to-date returns.

Credo Technology Group Holding Ltd. however, belongs to the Electronics - Semiconductors industry. Currently, this 45-stock industry is ranked #81. The industry has moved +5.1% so far this year.

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


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