CommVault Systems, severely penalized on recent sessions became oversold and now offers an interesting entry point for buyers.
The group usually releases better-than-expected statements and the recent full year 2014 earnings announcement was no exception. In fact, CommVault had a solid year as it achieved record revenue ($586 million, thus an increase of 18% over prior period). Although sales in the U.S. rose 13%, those generated abroad jumped 24%. In addition, analysts upwardly revised the company’s EPS and today they expect to receive $1.4 per share from only $1.14 by May 2013.
Technical patterns attest of a share that recently became oversold due to a sudden breakaway gap. With an exhausted selling pressure, positive figures recently posted out by the company should boost prices toward higher levels, letting the security aim at the midterm target of USD 57. The oversold situation previously mentioned should lure investors desiring to buy CommVault shares. As all weekly moving averages still having a positive orientation, likelihood for prices to encounter them increases.
Investors can take a long position at current prices in CommVault. The main objective remains the short term resistance at USD 57 and a stop loss must be placed below the support line at USD 45.8.
Commvault Systems, Inc. is a data management company. The Company provides a unified Data Management Platform that spans all the users' data regardless of where it lives (on-premises, hybrid, or multi-cloud) or how it is structured (legacy applications, databases, virtual machines (VMs), or containers). It offers solutions through all combinations of software subscriptions, integrated appliances, partner-managed, or Software as a Service (SaaS) via its Metallic portfolio. The Company's offerings are organized into four categories: Data Recovery, Data Compliance and Governance, Data Storage, and Data Security. Its Commvault Backup and Recovery (CBR) provides backup, verifiable recovery and cost-optimized cloud workload mobility, helping to ensure data availability, even across multiple clouds. Commvault Disaster Recovery (CDR) provides a replication and disaster recovery solution from a single extensible platform, which is managed through the Command Center.