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Commvault (CVLT) Soars 6.1%: Is Further Upside Left in the Stock?

Commvault Systems (CVLT) shares rallied 6.1% in the last trading session to close at $65.99. 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 2.1% gain over the past four weeks.

The recent upswing can be attributed to the growing adoption of the company’s differentiated platform and portfolio among both customers and partners. The company is benefiting from strong demand for its’ software and SaaS offerings, increased multi-product adoption and through large deals which is helping the company take market share from competition.

This data-management software company is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of +1.6%. Revenues are expected to be $195.3 million, up 6.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and 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, Ansys (ANSS), finished the last trading session 4.2% higher at $256.95. ANSS has returned -2.5% over the past month.

For Ansys, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.62. This represents a change of -12.4% from what the company reported a year ago. Ansys currently has a Zacks Rank of #3 (Hold).

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