Trade-Ideas LLC identified

CommVault Systems

(

CVLT

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified CommVault Systems as such a stock due to the following factors:

  • CVLT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.2 million.
  • CVLT has traded 228.730999999999994543031789362430572509765625 options contracts today.
  • CVLT is making at least a new 3-day high.
  • CVLT has a PE ratio of 48.
  • CVLT is mentioned 1.71 times per day on StockTwits.
  • CVLT has not yet been mentioned on StockTwits today.
  • CVLT is currently in the upper 20% of its 1-year range.
  • CVLT is in the upper 35% of its 20-day range.
  • CVLT is in the upper 45% of its 5-day range.
  • CVLT is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on CVLT:

CommVault Systems, Inc. provides data and information management software applications and related services in North America, Europe, Australia, and Asia. CVLT has a PE ratio of 48. Currently there are 7 analysts that rate CommVault Systems a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for CommVault Systems has been 349,300 shares per day over the past 30 days. CommVault Systems has a market cap of $1.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.42 and a short float of 6.4% with 8.75 days to cover. Shares are up 14.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CommVault Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 72.8% when compared to the same quarter one year prior, rising from $3.35 million to $5.79 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 5.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has slightly increased to $37.18 million or 3.32% when compared to the same quarter last year. Despite an increase in cash flow, COMMVAULT SYSTEMS INC's cash flow growth rate is still lower than the industry average growth rate of 32.73%.
  • COMMVAULT SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COMMVAULT SYSTEMS INC reported lower earnings of $0.00 versus $0.55 in the prior year. This year, the market expects an increase in earnings to $0.90 from $0.00.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Software industry and the overall market, COMMVAULT SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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