Latest news with #CVLT
Yahoo
4 days ago
- Business
- Yahoo
Is CommVault Systems (CVLT) Outperforming Other Computer and Technology Stocks This Year?
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group 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? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question. Commvault Systems is one of 608 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. 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 #2 (Buy). Over the past 90 days, the Zacks Consensus Estimate for CVLT's full-year earnings has moved 7.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. Based on the latest available data, CVLT has gained about 24% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 0.2% on average. As we can see, Commvault Systems is performing better than its sector in the calendar year. Another stock in the Computer and Technology sector, Credo Technology Group Holding Ltd. (CRDO), has outperformed the sector so far this year. The stock's year-to-date return is 8.6%. In Credo Technology Group Holding Ltd.'s case, the consensus EPS estimate for the current year increased 17.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Commvault Systems belongs to the Computer - Software industry, a group that includes 30 individual stocks and currently sits at #49 in the Zacks Industry Rank. On average, stocks in this group have gained 8.2% this year, meaning that CVLT is performing better in terms of year-to-date returns. Credo Technology Group Holding Ltd. however, belongs to the Electronics - Semiconductors industry. Currently, this 45-stock industry is ranked #81. The industry has moved +5.1% so far this year. Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Commvault Systems and Credo Technology Group Holding Ltd. as they could maintain 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 Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
1 Volatile Stock with Solid Fundamentals and 2 to Steer Clear Of
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors. These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here is one volatile stock that could deliver huge gains and two that might not be worth the risk. Rolling One-Year Beta: 3.94 Founded by the former head of Google's enterprise business, Upstart (NASDAQ:UPST) is an AI-powered lending platform facilitating loans for banks and consumers. Why Does UPST Fall Short? Sales tumbled by 11.4% annually over the last three years, showing industry trends like AI are working against its favor Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens Upstart's stock price of $51.30 implies a valuation ratio of 4.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than UPST. Rolling One-Year Beta: 1.36 Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance. Why Are We Wary of CVLT? Sales trends were unexciting over the last three years as its 9% annual growth was well below the typical software company Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 1.6 percentage points Commvault Systems is trading at $186.99 per share, or 7.5x forward price-to-sales. Check out our free in-depth research report to learn more about why CVLT doesn't pass our bar. Rolling One-Year Beta: 1.11 Founded in 2009, Integral Ad Science (NASDAQ:IAS) provides digital advertising verification and optimization solutions, ensuring that ads are viewable by real people in brand-safe environments across various platforms and devices. Why Do We Like IAS? Software platform has product-market fit given the rapid recovery of its customer acquisition costs Operating margin improvement of 11.3 percentage points over the last year demonstrates its ability to scale efficiently Robust free cash flow margin of 22.1% gives it many options for capital deployment At $8.24 per share, Integral Ad Science trades at 2.3x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. 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
Yahoo
03-06-2025
- Business
- Yahoo
1 Mooning Stock on Our Buy List and 2 to Be Wary Of
Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions. However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here is one stock we think lives up to the hype and two not so much. One-Month Return: +8.6% Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance. Why Do We Think Twice About CVLT? Sales trends were unexciting over the last three years as its 9% annual growth was well below the typical software company Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 1.6 percentage points At $189 per share, Commvault Systems trades at 7.5x forward price-to-sales. Read our free research report to see why you should think twice about including CVLT in your portfolio, it's free. One-Month Return: +11.5% Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ:PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes. Why Do We Pass on PINC? Sales tumbled by 9.3% annually over the last two years, showing market trends are working against its favor during this cycle Sales are projected to tank by 10.6% over the next 12 months as its demand continues evaporating Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term Premier's stock price of $22.86 implies a valuation ratio of 17x forward P/E. Dive into our free research report to see why there are better opportunities than PINC. One-Month Return: +6.4% Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions. Why Is PLTR a Good Business? Average billings growth of 38.6% over the last year enhances its liquidity and shows there is steady demand for its products Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently Strong free cash flow margin of 47.2% enables it to reinvest or return capital consistently Palantir is trading at $131.63 per share, or 81.2x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Yahoo
27-05-2025
- Business
- Yahoo
Brokers Suggest Investing in Commvault (CVLT): Read This Before Placing a Bet
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Commvault Systems (CVLT). 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. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. 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. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. 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. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. 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. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. In terms of earnings estimate revisions for Commvault, the Zacks Consensus Estimate for the current year has increased 9.1% over the past month to $4.11. 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 #2 (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 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
Yahoo
13-05-2025
- Business
- Yahoo
CVLT Q1 Earnings Call: Cloud Security and SaaS Upsell Drive Outperformance, Guidance Points to Sustained Growth
Data backup provider Commvault (NASDAQ:CVLT) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 23.2% year on year to $275 million. The company expects next quarter's revenue to be around $268 million, close to analysts' estimates. Its non-GAAP profit of $1.03 per share was 10.7% above analysts' consensus estimates. 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 (10.7% beat) Adjusted Operating Income: $59.1 million vs analyst estimates of $53.97 million (21.5% margin, 9.5% beat) Management's revenue guidance for the upcoming financial year 2026 is $1.14 billion at the midpoint, beating analyst estimates by 2.8% and implying 14% growth (vs 18.4% in FY2025) Operating Margin: 9.7%, up from 8.1% in the same quarter last year Free Cash Flow Margin: 27.7%, up from 11.4% in the previous quarter 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: $7.77 billion Commvault's first quarter results exceeded Wall Street expectations, as management credited strong customer demand for cyber resilience and rapid adoption of its SaaS-based data protection offerings. CEO Sanjay Mirchandani attributed the quarter's momentum to growing concerns around ransomware and compliance, with products like Active Directory Recovery and Clean Room winning large enterprise customers and driving higher subscription revenue. He noted, "Organizations are increasingly turning to Commvault to keep their business continuous," highlighting recent wins in regulated industries and cloud-first environments. For its forward-looking guidance, leadership emphasized continued investment in product expansion and cloud integrations to capture what it sees as a $24 billion market opportunity. CFO Jen DiRico explained the company's margin outlook and investment strategy as a balance between maintaining profitability and accelerating growth, stating that Commvault will "continue to invest behind the opportunity while also being thoughtful around our overall profitability." Management is monitoring macroeconomic conditions, but remains confident that demand for cyber resilience and cloud security will drive double-digit growth for the year. Commvault's management focused on customer adoption of its cyber resilience platform, product innovation, and expanding partner relationships as the main contributors to the quarter's results and outlook. Cyber resilience demand: Growing threats like ransomware and stricter regulations are making cyber resilience a top priority for customers, especially in financial services and healthcare. Commvault's solutions were cited in wins with major banks and multinational corporations seeking to consolidate and simplify their data protection. Product innovation and launches: The company introduced new capabilities, such as Active Directory forest-level recovery and Cloud Rewind, enabling faster recovery from cyberattacks and cloud data loss. Management highlighted the importance of these features for recovering critical business operations quickly, particularly as enterprises adopt more AI-driven workloads. SaaS and subscription momentum: Commvault's SaaS offerings—especially Active Directory, Clean Room, and Threat Scan—drove a significant share of new and upsell business. Subscription annual recurring revenue (ARR) grew sharply, and roughly 30% of SaaS customers now use multiple products, supporting management's cross-sell strategy. Partner ecosystem expansion: Collaborations with technology and cloud partners like AWS, Hitachi, and HPE accelerated international growth and enabled Commvault to win business by supporting compliance requirements such as GDPR and DORA. Marketplace transactions increased notably year over year. Hybrid and cloud-first strategy: Management emphasized Commvault's ability to deliver both on-premise and cloud-native protection, giving enterprises flexibility. Investments in hybrid and multi-cloud architecture were presented as competitive differentiators, helping to win customers migrating complex workloads to the cloud. Management's outlook for the coming quarters centers on sustained demand for cyber resilience solutions, continued product innovation, and prudent investment in growth initiatives. Cloud and cyber security tailwinds: The ongoing rise in cyberattacks, stricter compliance mandates, and enterprise adoption of hybrid and multi-cloud environments are expected to fuel continued demand for Commvault's offerings. Expansion of multiproduct adoption: Management aims to increase the percentage of SaaS customers using multiple offerings, leveraging cross-sell and upsell opportunities with newer modules like Threat Scan and Clean Room, which they believe will drive higher net retention. Balanced investment approach: While targeting double-digit revenue growth, Commvault plans to maintain margins through disciplined investment in R&D, sales, and partner enablement. Management noted the different margin profile of SaaS offerings and intends to balance growth with profitability. Eric Heath (KeyBanc Capital Markets): Asked how macroeconomic uncertainty is affecting customer demand and sales cycles; management replied that cyber resilience remains a priority and that no significant changes in customer buying patterns have emerged. Eric Heath (KeyBanc Capital Markets): Sought clarity on operating margin outlook and investment strategy; CFO Jen DiRico explained the flat margin guidance as a balance between seizing growth opportunities and maintaining profitability. Aaron Rakers (Wells Fargo): Requested detail on the integration and contribution of recent acquisitions; management emphasized that acquired products are now fully integrated and provide unique capabilities, especially for cloud-scale data recovery. Aaron Rakers (Wells Fargo): Inquired about progress in multiproduct SaaS adoption; leadership stated that the absolute number of customers using multiple products is rising, with net dollar retention remaining high. Param Singh (Oppenheimer): Asked about changes in the competitive landscape following industry consolidation; management responded that Commvault's focus on resilience and hybrid architecture is driving share gains, particularly in high-growth SaaS segments. Looking ahead, the StockStory team will be monitoring (1) the pace at which Commvault expands multiproduct adoption among SaaS customers, (2) the impact of new product launches and integrations on customer wins in regulated and international markets, and (3) the company's ability to sustain high net retention and ARR growth as the competitive landscape evolves. Execution on cross-sell initiatives and continued partner ecosystem expansion will also serve as key indicators of future performance. Commvault Systems currently trades at a forward price-to-sales ratio of 7×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. 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 176% over the last five years. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
