A number of stocks fell in the morning session after a hotter-than-expected wholesale inflation report revived concerns about persistent inflation and tempered hopes for a Federal Reserve interest rate cut.
Combining fundamental and technical analysis, COMMVAULT SYSTEMS INC (CVLT) shows strong growth, profitability, and a bullish breakout pattern, making it a promising stock pick.
Data backup provider Commvault (NASDAQ:CVLT) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 25.5% year on year to $282 million. Guidance for next quarter’s revenue was better than expected at $273 million at the midpoint, 0.7% above analysts’ estimates. Its non-GAAP profit of $1.01 per share was 4.1% above analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after cooler-than-expected inflation data ignited investor optimism for a potential Federal Reserve interest rate cut. The July Consumer Price Index (CPI) report, an important measure of inflation, came in cooler than expected, showing prices holding steady at an annual rate of 2.7%. This data has led to speculation that the Federal Reserve might lower interest rates. For growth-focused sectors like SaaS, lower interest rates are particularly beneficial as they increase the present value of companies' future earnings, making their stocks more appealing.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Software is eating the world, and virtually no business is left untouched by it. Companies bringing it to life have been rewarded with high valuation multiples that make fundraising easier,
but they have weighed on the returns lately as the industry has pulled back by 9.1% over the past six months. This performance is a far cry from the S&P 500’s 4.5% ascent.
A number of stocks fell in the afternoon session after the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness. Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital,
and those that can maintain this trifecta year in and year out often become the legends of the investing world.
The data protection and cybersecurity company received price target boosts from several brokerages, citing strong performance and momentum in the backup and recovery segment.
Commvault Systems (CVLT) aligns with Mark Minervini's trend-following strategy, showing strong technicals, high relative strength, and robust earnings & revenue growth. A potential pick for momentum investors.
Shares of data backup provider Commvault (NASDAQ:CVLT)
jumped 16.1% in the morning session after the company reported first-quarter fiscal 2026 results that surpassed analyst expectations and raised its full-year revenue outlook. The data protection company posted revenue of $282 million, a 26% year-over-year increase that beat forecasts. Adjusted earnings came in at $1.01 per share, also ahead of estimates. The strong performance was driven by a significant shift to its subscription-based services. Subscription revenue surged 46% year-over-year, while its Software-as-a-Service (SaaS) offerings jumped 66%. This growth was also reflected in the company’s total Annualized Recurring Revenue (ARR), a key metric for future business, which climbed 24% to $996 million. Capping the positive report, Commvault provided an optimistic forecast for the second quarter and raised its revenue guidance for the full fiscal year.
Data backup provider Commvault (NASDAQ:CVLT) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 25.5% year on year to $282 million. Guidance for next quarter’s revenue was better than expected at $273 million at the midpoint, 0.7% above analysts’ estimates. Its non-GAAP profit of $1.01 per share was 4.1% above analysts’ consensus estimates.
Shares of data backup provider Commvault (NASDAQ:CVLT)
jumped 3.2% in the morning session after Guggenheim upgraded the firm's stock to "Buy" from "Neutral". The investment firm also set a price target of $210, the highest on Wall Street, suggesting a significant potential upside from its previous closing price. Guggenheim analyst Howard Ma cited positive channel checks and strong underlying demand for data protection as key reasons for the bullish turn. The analyst noted that Commvault's software-as-a-service (SaaS) offering is gaining traction and is a preferred choice for complex, hybrid enterprise IT environments. Guggenheim anticipates that Commvault will outperform on key financial metrics at the start of its fiscal year 2026, forecasting both revenue growth and free cash flow margins to exceed 20%. This positive sentiment was echoed by the majority of analysts covering the stock, with a consensus "Moderate Buy" rating.
