Commvault Systems CVLT shares rallied 4.6% in the last trading session to close at $140.04. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 21% gain over the past four weeks.
CVLT shares are benefitting from an expanded Microsoft collaboration that embeds Commvault's cyber resilience platform directly within Azure enabling marketplace purchases tied to customers' cloud consumption commitments.
This data-management software company is expected to post quarterly earnings of $1.16 per share in its upcoming report, which represents a year-over-year change of +14.9%. Revenues are expected to be $311.03 million, up 10.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Commvault, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CVLT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Commvault is a member of the Zacks Computer - Software industry. One other stock in the same industry, Cadence Design Systems CDNS, finished the last trading session 2.5% higher at $377.27. CDNS has returned -1.5% over the past month.
For Cadence, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.05. This represents a change of +24.2% from what the company reported a year ago. Cadence currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).