Commvault Systems (CVLT) Beats Stock Market Upswing: What Investors Need to Know

Commvault Systems (CVLT) ended the recent trading session at $131.56, demonstrating a +1.82% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.46% for the day. Meanwhile, the Dow experienced a rise of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.45%.

The stock of data-management software company has fallen by 2.2% in the past month, lagging the Computer and Technology sector's gain of 4.69% and the S&P 500's gain of 2%.

The investment community will be paying close attention to the earnings performance of Commvault Systems in its upcoming release. In that report, analysts expect Commvault Systems to post earnings of $1.25 per share. This would mark year-over-year growth of 37.36%. Alongside, our most recent consensus estimate is anticipating revenue of $310.8 million, indicating a 12.53% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.44 per share and revenue of $1.31 billion. These totals would mark changes of +25.06% and +10.39%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Commvault Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Commvault Systems holds a Zacks Rank of #3 (Hold).

Digging into valuation, Commvault Systems currently has a Forward P/E ratio of 23.76. Its industry sports an average Forward P/E of 17.24, so one might conclude that Commvault Systems is trading at a premium comparatively.

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons 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.

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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This article originally published on Zacks Investment Research (zacks.com).

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