Commvault Systems (CVLT) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest close session, Commvault Systems (CVLT) was down 1.2% at $78.97. This change lagged the S&P 500's 0.44% gain on the day. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.54%.

The data-management software company's shares have seen a decrease of 8.17% over the last month, not keeping up with the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 3.31%.

Analysts and investors alike will be keeping a close eye on the performance of Commvault Systems in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.11, signifying a 7.77% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $306.42 million, up 11.41% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.19 per share and revenue of $1.18 billion. These totals would mark changes of +14.79% and +18.44%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Commvault Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.02% higher. Currently, Commvault Systems is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, Commvault Systems is currently trading at a Forward P/E ratio of 16.02. Its industry sports an average Forward P/E of 15.77, 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. Currently, this industry holds a Zacks Industry Rank of 49, positioning it in the top 21% of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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CommVault Systems, Inc. (CVLT): Free Stock Analysis Report

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