What Makes Commvault (CVLT) a New Strong Buy Stock

Core Viewpoint - Commvault Systems (CVLT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Commvault suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. Recent Earnings Estimate Revisions - For the fiscal year ending March 2026, Commvault is expected to earn $4.11 per share, reflecting a 12.6% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Commvault has increased by 7.6%, indicating a positive trend in earnings expectations [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 5% receiving a 'Strong Buy' rating [7][9]. - The upgrade of Commvault to a Zacks Rank 1 positions it among the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].