Latest news with #Commvault
Yahoo
a day ago
- Business
- Yahoo
Is It Worth Investing in Commvault (CVLT) Based on Wall Street's Bullish Views?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Let's take a look at what these Wall Street heavyweights have to say about Commvault Systems (CVLT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Commvault currently has an average brokerage recommendation (ABR) of 1.89, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.89 approximates between Strong Buy and Buy. Of the nine recommendations that derive the current ABR, five are Strong Buy, representing 55.6% of all recommendations. Check price target & stock forecast for Commvault here>>> While the ABR calls for buying Commvault, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for Commvault, the Zacks Consensus Estimate for the current year has increased 1% over the past month to $4.13. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Commvault. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Commvault may serve as a useful guide for investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Forbes
5 days ago
- Business
- Forbes
Quantum Threats Reshape Commvault's Vision For Data Security
Commvault is incorporating post-quantum cryptography to address future data security risks. Data protection provider Commvault announced earlier this month that it is adding more quantum-safe capabilities to its platform to build out defenses against post-quantum cryptography. This is important because, as quantum computing shifts from theoretical to practical use, it brings a new class of cybersecurity threats. To help organizations prepare, Commvault has incorporated NIST-recommended PQC algorithms into its data protection offerings, covering both cloud and on-premises environments. The goal is to ensure long-term data security by protecting backups made today from potential decryption by future quantum systems. Over the past year, Commvault has introduced multiple post-quantum cryptography capabilities to safeguard data against future risks posed by quantum computing. PQC has important implications for customers, competitors and the broader industry, and all organizations should prepare for a quantum-driven — and quantum-safe — future. (Note: Commvault is an advisory client of my firm, Moor Insights & Strategy.) Understanding The Quantum Threat To Enterprise Data First, a little background on why this is so important. Quantum computers apply principles of quantum mechanics to process information in fundamentally different ways from classical computers. While this could unlock incredible advances in medicine, materials science, finance, AI and more, it also introduces new security concerns. This is because current encryption methods such as RSA and elliptic curve cryptography depend on mathematical problems that are very hard to reverse — unless a powerful quantum computer is involved. Once quantum computers that powerful are launched, probably in the next few years, these algorithms can potentially be broken quickly, compromising these widely used encryption methods. A crucial concern today is the 'harvest now, decrypt later' tactic, where bad actors can intercept and store encrypted data to decrypt it in the future once quantum capabilities mature. HNDL protection is especially critical for sectors with long-term data sensitivity, such as healthcare, finance and government. (Think of any setting in which sensitive information — names, dates of birth, government ID numbers, bank account numbers, medical histories and the like — remains unchanged for many years.) A survey by the Information Systems Audit and Control Association found that 63% of cybersecurity professionals believe quantum computing will shift or expand cyber risks, and half expect it to create compliance challenges. This image shows how users can enable PQC within Commvault's CommCell environment by selecting a ... More checkbox in the group configuration settings. Commvault's Post-Quantum Cryptography Response Commvault has taken a practical, multi-stage approach to quantum-era risks. In August 2024, it introduced a cryptographic agility framework, which is meant to allow organizations to adopt new cryptographic standards for PQC without major system changes. The framework includes several NIST-recommended quantum-resistant algorithms — CRYSTALS-Kyber, CRYSTALS-Dilithium, SPHINCS+ and FALCON. (My colleague Paul Smith-Goodson, who has been covering quantum computing for years, went into more detail about these algorithms in the context of IBM's PQC efforts, also in August 2024.) Commvault's announcement earlier this month builds on last year's release by adding support for the Hamming Quasi-Cyclic algorithm, which uses quantum error-correcting codes to resist quantum decryption. But rather than focusing only on algorithm support, Commvault also emphasizes operational integration. Its Risk Analysis tools help organizations identify sensitive data, allowing quantum-resistant encryption to be applied where it's most needed. The crypto-agility framework offered by Commvault allows organizations to shift between cryptographic methods via relatively simple configuration changes, without needing to overhaul their existing environments. This flexibility helps minimize disruptions and lowers the costs associated with adapting to new standards as they emerge. Securing Critical Industries For The Quantum Era Commvault's PQC features should be especially helpful to organizations in healthcare, finance and government as they address compliance needs, ensure continuity and — most importantly — protect data that is held for decades. As touched on above, these industries are especially at risk for deferred decryption attacks, so implementing PQC features now should help address the risk of HNDL exploits later. Besides the benefits already mentioned, this could help organizations using Commvault maintain trust among regulators, customers and partners for the long haul. As data protection standards in these industries become stricter in anticipation of quantum threats, solutions that incorporate quantum-resistant encryption are increasingly necessary. Forward-looking IT organizations are already adopting these technologies. For instance, the Nevada Department of Transportation has adopted Commvault's PQC tools to meet government security requirements and protect sensitive information. The company also cited Peter Hands, CISO of the British Medical Association, who said, 'Commvault's rapid integration of NIST's quantum-resistant standards, particularly HQC, gives us great confidence that our critical information is protected now and well into the future.' The adoption of PQC is accelerating as both technological developments and regulatory requirements create a framework for organizations to address emerging threats from quantum computing. In the United States, for instance, federal agencies have been instructed to integrate post-quantum standards into their procurement and operational practices. Similar regulatory efforts are taking place in the European Union and other jurisdictions, where updates to data protection frameworks increasingly include provisions for quantum-safe encryption. To maintain security and compatibility during the transition, many organizations are implementing hybrid encryption methods that combine traditional and quantum-resistant algorithms. This approach allows for gradual migration to fully quantum-resistant systems while enabling protection against both current and future threats. PQC Challenges And The Push For Wider Adoption Commvault's phased introduction of PQC capabilities is a step forward, but current support is mostly limited to cloud-based customers using particular software versions. This creates a gap for organizations relying on hybrid or on-premises environments, which are still widely used in sensitive sectors like those already mentioned. To address this, Commvault would benefit from providing a clear roadmap for extending PQC support across all deployment models. Such a roadmap should outline which software versions will be supported, specify the technical requirements and offer a realistic timeline for implementation. The broader data protection market is also shifting as major technology providers such as IBM and Microsoft integrate quantum-safe features into their platforms. Other data protection vendors, such as Cohesity, Veeam and Rubrik, are expected to follow suit as industry standards become more established. This means Commvault will likely face growing competition in offering robust PQC solutions. Keeping pace will require not only technical expansion but also practical guidance for customers on how to adopt and apply PQC in various enterprise scenarios. Flexibility and clear communication about available features and best practices will be important for supporting a wide range of customer environments and needs. Aligning Data Security Strategies For A Quantum Future Commvault's early efforts in post-quantum cryptography and crypto-agility demonstrate a commitment to long-term data security. However, maintaining progress will depend on expanding access to PQC features for all customers, providing transparent information about costs and continuing to work closely with regulatory bodies. Quantum computing presents both new risks and opportunities. As traditional encryption methods become more vulnerable, the need for quantum-resistant security will grow. Commvault's PQC features offer a practical way for organizations to protect data that must remain secure for years. By focusing on adaptability, compliance and targeted encryption strategies, Commvault helps customers build stronger defenses for the future. The timeline for quantum decryption could be shorter than many anticipate, making it important for organizations to start preparing now. For enterprises, taking early action is important to avoid exposure and regulatory issues. For vendors, ongoing improvements in accessibility, transparency and alignment with emerging standards will determine long-term success. Simplifying the path to quantum readiness will be a key factor in supporting customers through this transition.
Yahoo
7 days ago
- Business
- Yahoo
Commvault Systems's Q1 Earnings Call: Our Top 5 Analyst Questions
Commvault's first quarter results reflected solid execution, with management attributing growth to strong demand for cyber resilience solutions and continued traction in cloud-based offerings. CEO Sanjay Mirchandani pointed to rapid adoption of new products like Active Directory forest-level recovery and Cloud Rewind, as well as expanding relationships with large enterprise customers across financial services and regulated industries. The company cited its ability to help organizations address complex compliance needs and recover quickly from cyberattacks as key drivers of new business and customer expansion. Is now the time to buy CVLT? Find out in our full research report (it's free). Revenue: $275 million vs analyst estimates of $262.4 million (23.2% year-on-year growth, 4.8% beat) Adjusted EPS: $1.03 vs analyst estimates of $0.93 (11% beat) Adjusted Operating Income: $59.1 million vs analyst estimates of $53.97 million (21.5% margin, 9.5% beat) Revenue Guidance for Q2 CY2025 is $268 million at the midpoint, above analyst estimates of $263.2 million Operating Margin: 9.7%, up from 8.1% in the same quarter last year Annual Recurring Revenue: $930.1 million at quarter end, up 20.8% year on year Billings: $313 million at quarter end, up 28% year on year Market Capitalization: $7.6 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Eric Heath (KeyBanc Capital Markets) asked about macroeconomic impacts on customer buying and sales cycles. CEO Sanjay Mirchandani responded that cyber resilience remains a top priority for clients, with no significant change in sales cycle length or close rates from the previous quarter. Aaron Rakers (Wells Fargo) inquired about the integration and momentum from the Commvault acquisition. CFO Jen DiRico indicated that the business is fully integrated and contributes unique capabilities, especially in handling large cloud datasets, though specific numbers were not disclosed. Param Singh (Oppenheimer) questioned competitive dynamics following industry consolidation and how Commvault differentiates itself. Mirchandani emphasized the company's hybrid approach and focus on resilience, noting strong double-digit growth as evidence of market share gains. Rudy Kessinger (DA Davidson) sought clarity on ARR seasonality and productivity assumptions in guidance. DiRico explained that net new ARR is expected to follow typical quarterly patterns, with guidance reflecting prudent macro assumptions but confidence in the durability of the business model. James Fish (Piper Sandler) asked about international growth and the durability of regulatory-driven demand. Management stated that compliance-driven projects are ongoing and not a one-time event, with balanced growth expected across regions. In the coming quarters, the StockStory team will be monitoring (1) the pace of multi-product adoption among existing customers, (2) ongoing growth in SaaS ARR as Commvault expands its platform, and (3) the company's ability to leverage technology and reseller partnerships to drive new wins. The evolution of regulatory requirements and customer needs in data security will also be important factors to watch. Commvault Systems currently trades at $173.38, up from $165.72 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
NDTV
7 days ago
- Business
- NDTV
Australian Companies Recover Faster With Tougher Regulations After Cyberattack: Study
Australian companies have sharply reduced the time it takes to recover from cyberattacks, a sign of improved preparedness amid heightened regulatory pressure following high-profile breaches at Optus and Medibank. Businesses in Australia and New Zealand now take 28 days on average to recover from an incident, down from 45 days a year earlier, according to a survey of 408 IT executives that was shared exclusively with Reuters. That still trails the global average of 24 days. "I do put that down to the fact that organisations and enterprises are getting more aware," said Martin Creighan, Asia-Pacific vice president at U.S. data protection firm Commvault, which commissioned the survey. "I also put it down to the fact that the regulators are being more stringent and more strict on what their requirements are," he added in an interview. Australia introduced mandatory breach disclosures and cybersecurity compliance reporting after 2022 attacks on Optus, owned by Singapore Telecommunications, and Medibank exposed millions of customer records. The country's cybercrime agency reported the average self-reported cost of cybercrime per business fell 8%, including an 11% drop for large firms, in the year to June 2024. Despite improved recovery times, fewer than a third of firms could respond effectively to an attack, and 12% had no formal response plan, showed the survey by Commvault which counts some of Australia's biggest banks and government departments as clients. Over half lacked full visibility of where data was stored or how systems were connected, the survey found. Creighan said cybersecurity was no longer confined to company tech departments and he had seen a rise in requests to brief boards on cyber resilience "because they're worried about the regulation landscape".
Yahoo
7 days ago
- Business
- Yahoo
Australian companies recover faster from cyberattacks after tougher regulation
By Byron Kaye SYDNEY (Reuters) -Australian companies have sharply reduced the time it takes to recover from cyberattacks, a sign of improved preparedness amid heightened regulatory pressure following high-profile breaches at Optus and Medibank. Businesses in Australia and New Zealand now take 28 days on average to recover from an incident, down from 45 days a year earlier, according to a survey of 408 IT executives that was shared exclusively with Reuters. That still trails the global average of 24 days. "I do put that down to the fact that organisations and enterprises are getting more aware," said Martin Creighan, Asia-Pacific vice president at U.S. data protection firm Commvault, which commissioned the survey. "I also put it down to the fact that the regulators are being more stringent and more strict on what their requirements are," he added in an interview. Australia introduced mandatory breach disclosures and cybersecurity compliance reporting after 2022 attacks on Optus, owned by Singapore Telecommunications, and Medibank exposed millions of customer records. The country's cybercrime agency reported the average self-reported cost of cybercrime per business fell 8%, including an 11% drop for large firms, in the year to June 2024. Despite improved recovery times, fewer than a third of firms could respond effectively to an attack, and 12% had no formal response plan, showed the survey by Commvault which counts some of Australia's biggest banks and government departments as clients. Over half lacked full visibility of where data was stored or how systems were connected, the survey found. Creighan said cybersecurity was no longer confined to company tech departments and he had seen a rise in requests to brief boards on cyber resilience "because they're worried about the regulation landscape".
