Latest news with #CommvaultSystems
Yahoo
2 days 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
Yahoo
24-06-2025
- Business
- Yahoo
Commvault Systems (CVLT) Exceeds Market Returns: Some Facts to Consider
In the latest close session, Commvault Systems (CVLT) was up +1% at $172.16. The stock's change was more than the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%. The stock of data-management software company has fallen by 2.28% in the past month, lagging the Computer and Technology sector's gain of 2.53% and the S&P 500's gain of 0.5%. The investment community will be closely monitoring the performance of Commvault Systems in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.97, marking a 14.12% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $268.63 million, reflecting a 19.57% rise from the equivalent quarter last year. CVLT's full-year Zacks Consensus Estimates are calling for earnings of $4.13 per share and revenue of $1.13 billion. These results would represent year-over-year changes of +13.15% and +13.97%, respectively. 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.03% higher. Commvault Systems presently features a Zacks Rank of #1 (Strong Buy). With respect to valuation, Commvault Systems is currently being traded at a Forward P/E ratio of 41.29. This signifies a premium in comparison to the average Forward P/E of 25.16 for its industry. The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250. 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. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. 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
Yahoo
23-06-2025
- Business
- Yahoo
Is CommVault Systems (CVLT) Stock Outpacing Its Computer and Technology Peers This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Commvault Systems (CVLT) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question. Commvault Systems is one of 608 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Commvault Systems is currently sporting a Zacks Rank of #1 (Strong Buy). Within the past quarter, the Zacks Consensus Estimate for CVLT's full-year earnings has moved 8.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Based on the most recent data, CVLT has returned 13% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 0.6% on average. This means that Commvault Systems is outperforming the sector as a whole this year. One other Computer and Technology stock that has outperformed the sector so far this year is Calix (CALX). The stock is up 36.2% year-to-date. For Calix, the consensus EPS estimate for the current year has increased 75.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Looking more specifically, Commvault Systems belongs to the Computer - Software industry, a group that includes 30 individual stocks and currently sits at #43 in the Zacks Industry Rank. On average, stocks in this group have gained 10.5% this year, meaning that CVLT is performing better in terms of year-to-date returns. On the other hand, Calix belongs to the Internet - Software industry. This 169-stock industry is currently ranked #54. The industry has moved +11.4% year to date. Investors interested in the Computer and Technology sector may want to keep a close eye on Commvault Systems and Calix as they attempt to continue their solid performance. 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 American Public Education, Inc. (APEI) : Free Stock Analysis Report Philip Morris International Inc. (PM) : Free Stock Analysis Report Crown Holdings, Inc. (CCK) : Free Stock Analysis Report Calix, Inc (CALX) : Free Stock Analysis Report DBV Technologies S.A. (DBVT) : Free Stock Analysis Report Dundee Precious Metals Inc. (DPMLF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
13-06-2025
- Business
- Yahoo
What Makes Commvault (CVLT) a New Strong Buy Stock
Commvault Systems (CVLT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements. As such, the Zacks rating upgrade for Commvault is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock. Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Commvault imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>. For the fiscal year ending March 2026, this data-management software company is expected to earn $4.11 per share, which is a change of 12.6% from the year-ago reported number. Analysts have been steadily raising their estimates for Commvault. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.6%. Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term. You can learn more about the Zacks Rank here >>> The upgrade of Commvault to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. 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 Sign in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
Commvault (CVLT) is an Incredible Growth Stock: 3 Reasons Why
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Commvault Systems (CVLT) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better. Here are three of the most important factors that make the stock of this data-management software company a great growth pick right now. Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Commvault is 32.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 13.1% this year, crushing the industry average, which calls for EPS growth of 12.4%. Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds. Right now, year-over-year cash flow growth for Commvault is 45.4%, which is higher than many of its peers. In fact, the rate compares to the industry average of 9.9%. While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 19.8% over the past 3-5 years versus the industry average of 10.5%. Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The current-year earnings estimates for Commvault have been revising upward. The Zacks Consensus Estimate for the current year has surged 1% over the past month. While the overall earnings estimate revisions have made Commvault a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that Commvault is a potential outperformer and a solid choice for growth 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
