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Commvault Systems (CVLT) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, Commvault Systems (CVLT - Free Report) closed at $128.16, marking a +2.37% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.64%. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.52%.

Heading into today, shares of the data-management software company had gained 4.53% over the past month, outpacing the Computer and Technology sector's gain of 1.98% and the S&P 500's gain of 3%.

The investment community will be closely monitoring the performance of Commvault Systems in its forthcoming earnings report. The company's upcoming EPS is projected at $0.98, signifying a 4.26% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $299 million, up 13.85% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.91 per share and revenue of $1.16 billion, which would represent changes of +7.12% and +16.82%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Commvault Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Commvault Systems is carrying a Zacks Rank of #5 (Strong Sell).

Investors should also note Commvault Systems's current valuation metrics, including its Forward P/E ratio of 32.02. This represents a premium compared to its industry average Forward P/E of 24.01.

The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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