Tech Stock Sensei

1 Software Stock That’s Safe to Buy Right Now and 1 That’s Not

The software industry has become increasingly important amid the growing spending on digitization and automation, cybersecurity, and cloud migration. The U.S. alone accounts for 42.6% of the global software market’s value.

Over the years, the software industry has become a stalwart of digital transformation. Revenue in the software market is projected to reach $593.40 billion in 2022. Revenue is expected to show an annual growth rate of 6.5% CAGR from 2022 to 2027, resulting in a market volume of $812.90 billion by 2027.

Given this backdrop, fundamentally strong software stock Commvault Systems, Inc. (CVLT) might be a safe buy now.

On the other hand, the stock market has remained under pressure lately on concerns surrounding the Fed’s hawkish stance and a possible recession. Moreover, as firms from small operations to multinational giants have laid off a significant number of employees, the second half of 2022 has been characterized by a series of tech layoffs.

Hence, fundamentally weak stock Robinhood Markets, Inc. (HOOD) might be best avoided amid the heightened volatility in the market.

Stock to Buy:

Commvault Systems, Inc. (CVLT)

CVLT provides data protection and information management software applications and related services globally. The company sells its products and services to large enterprises, small and medium-sized businesses, and government agencies.


On November 2, CVLT announced a new approach to data protection with the launch of Metallic File & Object Archive, a Data Management as a Service solution designed to lower storage costs while cost-effectively transforming how organizations navigate the world of Governance, Risk, and Compliance. The company aims to lower cost solution that helps reduce the risk of non-compliance.

On October 25, 2022, CVLT announced the expanded protection for Kubernetes workloads, including fully automated management, replication, migration, and security enhancements. The new features will offer customers simple management and enterprise-grade protection for hybrid, multi-cloud environments.

CVLT’s total revenues increased 5.7% year-over-year to $188.06 million for the second quarter that ended September 30, 2022. Its non-GAAP income from operations increased 14.1% year-over-year to $35.38 million. The company’s non-GAAP net income grew 14% year-over-year to $26.07 million, while its non-GAAP EPS rose 18.8% year-over-year to $0.57.

Street expects CVLT’s revenue to increase 3.6% year-over-year to $797.28 million in the current fiscal year ending March 2023. Its EPS is estimated to…

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