Wall Street is optimistic this morning with all the major benchmarks green following the holiday weekend as investors react to President Trump signing the COVID-19 relief bill which includes a round of $600 checks.
If you can stand a little risk, the rewards from small-cap tech stocks can be rich. Today we are highlighting one small-cap tech stock with promising trajectory and a consensus Buy rating from the Wall Street pros covering it.
CommVault Systems (CVLT) offers software to back up, manage, protect and recover data, via both the cloud and on-site systems. The New Jersey based firm says its software makes it a leader in data resiliency. About 80% of CVLT revenues are on some sort of subscription basis, which is typically viewed as more stable and predictable.
In September, CommVault announced it would make several products – New Commvault Disaster Recovery, Commvault Backup & Recovery and Commvault Complete Data Protection – available to general customers. Disaster Recovery, for instance, lets customers quickly launch backups of their workloads in the event of an outage.
Of six analysts covering CVLT three call the stock a Strong Buy, putting it among Wall Street’s top small-cap tech stocks at the moment. There is one Buy rating, two Hold ratings and no Sell ratings for the stock. William Blair analyst Keith Ader (Outperform) likes that a higher percentage of software revenue now comes from cloud subscriptions.
“We continue to see a favorable risk/reward for the stock, and believe that the company’s deep technology portfolio, installed base, and recurring revenue profile continue to be underappreciated by investors,” he says.
John Freeman of CFRA, one of a few analyst outfits that use Strong Buy ratings gives one to CommVault. He cites a laundry list of points that back up the bull case, including “solid progress for CEO (Sanjay) Mirchandani’s turnaround plan,” the expansion of a Microsoft (MSFT) partnership, attractive valuation and “large conservative, loyal customers.” He adds that the company had $341 million in net cash as of June.
Where to invest $1,000 right now...
Before you consider buying CommVault, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not CommVault.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
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