3 Reasons Growth Investors Will Love Commvault (CVLT)

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Commvault Systems Overview - Commvault Systems (CVLT) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for outperformance [11] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being highly desirable [4] - Commvault's historical EPS growth rate is 32.1%, with projected EPS growth of 12.5% this year, surpassing the industry average of 11.9% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - Commvault's year-over-year cash flow growth is 45.4%, significantly higher than the industry average of 9.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 19.8%, compared to the industry average of 10.3% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for Commvault have increased by 9.1% over the past month, indicating a favorable outlook [9] Group 5: Conclusion - Commvault has achieved a Growth Score of A and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for growth investors [11]