Commvault Systems (CVLT) closed at $183.73 in the latest trading session, marking a -4.2% move from the prior day. This change lagged the S&P 500's 0.29% loss on the day. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.34%.
Heading into today, shares of the data-management software company had gained 7.94% over the past month, lagging the Computer and Technology sector's gain of 8.98% and outpacing the S&P 500's gain of 3.08%.
The investment community will be paying close attention to the earnings performance of Commvault Systems in its upcoming release. It is anticipated that the company will report an EPS of $0.95, marking a 14.46% rise 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 pay attention to any latest changes in analyst estimates for Commvault Systems. Such recent modifications usually signify the changing landscape of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Commvault Systems is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Commvault Systems is currently being traded at a Forward P/E ratio of 46.6. For comparison, its industry has an average Forward P/E of 29.27, which means Commvault Systems is trading at a premium to the group.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 41% 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.
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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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