2 Software Stocks You'll Kick Yourself Later for Not Buying Now

NASDAQ: CVLT | Commvault Systems, Inc. News, Ratings, and Charts

CVLT – The Fed’s consecutive rate hikes have led to a selloff in software stocks this year. However, demand for software and services is expected to remain robust. Given the industry’s growth prospects, investors should consider buying fundamentally sound software stocks Commvault Systems (CVLT) and Rimini Street (RMNI). Keep reading….

Amid consecutive rate hikes and rising recession odds, investor sentiment toward software stocks has deteriorated, as evident from the SPDR S&P Software & Services ETF’s (XSW) 3.9% losses over the past month and 36.1% year-to-date losses.

However, demand for software and services has been robust. Also, amid rapid digitalization and tech advancements, the enterprise software industry is expected to generate massive returns in the coming years. The enterprise software market is expected to grow at a CAGR of 9.5% until 2030. Furthermore, revenue in the software market is projected to reach $593.40 billion in 2022.

Given the backdrop, investors could consider buying fundamentally sound software stocks Commvault Systems, Inc. (CVLT - Get Rating) and Rimini Street, Inc. (RMNI - Get Rating).

Commvault Systems, Inc. (CVLT - Get Rating)

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 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 and is a solid addition to the company’s portfolio.

CVLT’s total revenues increased 5.7% year-over-year to $188.06 million for the second quarter that ended September 30, 2022. Gross margin increased 3% year-over-year to $155.76 million. Also, its EPS came in at $0.10, up 150% year-over-year.

Street expects CVLT’s revenue to increase 3.6% year-over-year to $797.27 million in 2023. Its EPS is estimated to grow 6% year-over-year to $2.66 in 2023. It surpassed EPS estimates in all four trailing quarters. Over the past month, the stock has gained 16.8% to close the last trading session at $64.41.

CVLT has an overall A rating, which equates to a Strong Buy in our POWR Ratings systems. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

CVLT has an A grade for Growth and Quality and a B for Value and Sentiment. Within the Software – Application industry, it is ranked first among 143 stocks. 

Click here to see the additional POWR Ratings for Momentum and Stability for CVLT.

Rimini Street, Inc. (RMNI - Get Rating)

RMNI provides enterprise software products, services, and support for various industries. The company offers software support services for Oracle and SAP enterprise software products. 

On October 02, 2022, Seth A. Ravin, RMNI’s co-founder, CEO, and chairman of the board, said, “We believe Rimini Street’s portfolio of IT solutions provides the services many organizations need today around their enterprise software systems and provides industry-leading value, ROI and proven engineering capability.”

RMNI’s revenues came in at $101.93 million for the third quarter that ended September 30, 2022, up 6.6% year-over-year. Its gross profit increased marginally year-over-year to $62.66 million. Also, its current liabilities came in at $288.60 billion for the period ended September 30, 2022, compared to $329.50 billion for the period ended December 31, 2021.

Analysts expect RMNI’s revenue to increase 8.4% year-over-year to $405.97 million in 2022. Its EPS is estimated to grow 15% per annum for the next five years. RMNI’s shares have gained marginally intraday to close the last trading session at $4.19.

RMNI has an overall B rating, equating to a Buy in our POWR Ratings systems. It has a B grade for Value and Quality. It is ranked #25 out of 143 stocks in the same industry. 

Click here for the additional POWR Ratings for Growth, Stability, Sentiment, and Momentum for RMNI.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


CVLT shares were trading at $63.60 per share on Wednesday afternoon, down $0.81 (-1.26%). Year-to-date, CVLT has declined -7.72%, versus a -19.37% rise in the benchmark S&P 500 index during the same period.


About the Author: Rashmi Kumari


Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CVLTGet RatingGet RatingGet Rating
RMNIGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Becoming More Bullish on Stocks, But...

Stocks are on a roll with the S&P 500 (SPY) up more than 10% from the recent lows. Before you start getting too giddy, you should read this updated market outlook and trading plan Steve Reitmeister.

Stock Market Held Hostage

Uncertainty is the term most often applied to this stock market. Uncertainty over tariffs. Uncertainty of whether the S&P 500 (SPY) will fall into bear territory. Uncertainty over what happens next. Steve Reitmeister dives into the uncertainty to make sense of the market in this week’s commentary...

Stock Market Standing on the 50 Yard Line

Steve Reitmeister contemplates where the stock market stands now and what happens next in trying to stay on the right side of the market action. One path points to bear and one to new highs for the S&P 500 (SPY). Which will it be?

Bear or Bull Market?

The S&P 500 is on the brink of bear market territory...but that outcome is not a given at this time. Steve Reitmeister shares insights gleaned from his 45 years of investing to shine a light on current conditions along with his top picks...

Read More Stories

More Commvault Systems, Inc. (CVLT) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CVLT News