CommVault Systems Inc. (CVLT): Computer Software & Services' Highlighted Dud Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

CommVault Systems ( CVLT) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.5%. By the end of trading, CommVault Systems fell $1.29 (-1.6%) to $82 on average volume. Throughout the day, 601,562 shares of CommVault Systems exchanged hands as compared to its average daily volume of 723,300 shares. The stock ranged in price between $81.82-$83.10 after having opened the day at $83.03 as compared to the previous trading day's close of $83.29. Other companies within the Computer Software & Services industry that declined today were: Southcross Energy Partners ( SXE), down 21.4%, TigerLogic Corporation ( TIGR), down 7.3%, Exa ( EXA), down 6.7%, and Mattersight ( MATR), down 6.5%.
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CommVault Systems, Inc., together with its subsidiaries, provides data and information management software applications and related services primarily in North America, Europe, Australia, and Asia. CommVault Systems has a market cap of $3.78 billion and is part of the technology sector. The company has a P/E ratio of 85.4, above the S&P 500 P/E ratio of 17.7. Shares are up 17.7% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate CommVault Systems a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates CommVault Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Vringo ( VRNG), up 15.3%, TSR ( TSRI), up 10.8%, Astea International ( ATEA), up 9.7%, and Edgewater Technology ( EDGW), up 7.9%, were all gainers within the computer software & services industry with Oracle Corporation ( ORCL) being today's featured computer software & services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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