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Here is Why Growth Investors Should Buy Commvault (CVLT) Now
CommvaultCommvault(US:CVLT) zacks.comยท2024-05-23 17:46

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Commvault Systems (CVLT) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 23%, with projected EPS growth of 13.3% this year, surpassing the industry average of 12.1% [5] Group 2: Key Metrics - Commvault's asset utilization ratio is 1.03, indicating that the company generates $1.03 in sales for every dollar in assets, significantly higher than the industry average of 0.46 [6] - The company's sales are expected to grow by 7.4% this year, compared to the industry average of 6.7% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Commvault, with the Zacks Consensus Estimate for the current year increasing by 18.9% over the past month [8] - This trend has contributed to Commvault achieving a Zacks Rank 1 (Strong Buy) and a Growth Score of B [9] Group 4: Investment Potential - The combination of strong earnings growth, efficient asset utilization, and positive earnings estimate revisions positions Commvault well for outperformance, making it an attractive option for growth investors [10]