In the latest trading session, Commvault Systems (CVLT) closed at $176.45, marking a -4.73% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.3%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.03%.
Shares of the data-management software company have depreciated by 3.85% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.1%, and the S&P 500's gain of 2.09%.
Market participants will be closely following the financial results of Commvault Systems in its upcoming release. The company's upcoming EPS is projected at $0.95, signifying a 14.46% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $273.33 million, showing a 17.17% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.12 per share and revenue of $1.16 billion, indicating changes of +12.88% and +16.88%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Commvault Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Commvault Systems possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Commvault Systems has a Forward P/E ratio of 45 right now. This valuation marks a premium compared to its industry average Forward P/E of 26.83.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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CommVault Systems, Inc. (CVLT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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