In the latest close session, Commvault Systems (CVLT) was up +1.91% at $149.20. This move outpaced the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 1.13%.
Shares of the data-management software company witnessed a gain of 11.63% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.68%, and the S&P 500's gain of 1.26%.
Market participants will be closely following the financial results 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%. Meanwhile, the latest consensus estimate predicts the revenue to be $310.8 million, indicating a 12.53% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.44 per share and revenue of $1.31 billion, indicating changes of +25.06% and +10.39%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Commvault Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Commvault Systems possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Commvault Systems is currently being traded at a Forward P/E ratio of 26.92. Its industry sports an average Forward P/E of 16.37, 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 104, positioning it in the top 43% 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.
To follow CVLT in the coming trading sessions, be sure to utilize Zacks.com.
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CommVault Systems, Inc. (CVLT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).