Commvault (CVLT) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones involves significant risk and volatility [1] Group 1: Commvault Systems Overview - Commvault Systems (CVLT) is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - The stock has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2][10] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - Commvault's historical EPS growth rate stands at 32.1%, with projected EPS growth of 13.1% this year, surpassing the industry average of 12.4% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [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 10.5% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements [8] - Commvault's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 1% over the past month [8] Group 5: Conclusion - Commvault's combination of strong earnings estimate revisions and a Growth Score of A positions it as a potential outperformer and a solid choice for growth investors [10]