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Commvault Systems (CVLT) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Commvault Systems (CVLT - Free Report) ended the recent trading session at $121.59, demonstrating a -2.02% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.07%. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq decreased by 1.69%.

The stock of data-management software company has fallen by 1.99% in the past month, lagging the Computer and Technology sector's gain of 1.6% and the S&P 500's gain of 0.94%.

The investment community will be closely monitoring the performance of Commvault Systems in its forthcoming earnings report. In that report, analysts expect Commvault Systems to post earnings of $0.98 per share. This would mark year-over-year growth of 4.26%. Our most recent consensus estimate is calling for quarterly revenue of $299 million, up 13.85% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.91 per share and a revenue of $1.16 billion, signifying shifts of +7.12% and +16.82%, respectively, from the last year.

Any recent changes to analyst estimates for Commvault Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% lower. Right now, Commvault Systems possesses a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Commvault Systems is presently being traded at a Forward P/E ratio of 31.74. This expresses a premium compared to the average Forward P/E of 25.51 of its industry.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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