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Commvault Systems (CVLT) Stock Sinks As Market Gains: Here's Why

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In the latest close session, Commvault Systems (CVLT - Free Report) was down 2.2% at $188.78. The stock's performance was behind the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 0.31%.

The data-management software company's shares have seen an increase of 3.42% over the last month, not keeping up with the Computer and Technology sector's gain of 7.63% and outstripping the S&P 500's gain of 3.15%.

Market participants will be closely following the financial results of Commvault Systems in its upcoming release. The company is expected to report EPS of $0.95, up 14.46% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $273.33 million, reflecting a 17.17% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.12 per share and revenue of $1.16 billion, which would represent changes of +12.88% and +16.88%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Commvault Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. At present, Commvault Systems boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Commvault Systems is presently trading at a Forward P/E ratio of 46.9. For comparison, its industry has an average Forward P/E of 29.82, which means Commvault Systems is trading at a premium to the group.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CVLT in the coming trading sessions, be sure to utilize Zacks.com.


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