The following two software company stocks are highly recommended by analysts recently, so we glance through their recent performance to find why they are marked as the best stocks to buy at this moment.
CommVault Systems, Inc. (CVLT) is recommended as one of the best stocks to buy at present for its average stock rating of “Overweight” by 16 analysts, along with its better-than expected recent financial results.
CommVault Systems, a provider of information software applications and related services, reported Q1 results that beat analyst estimate on July 31, despite global economic uncertainty and rising competition. The first quarter profit jumped 44% on a double-digit growth in its revenue. EPS was 30 cents on revenue of $111.3, topping the analyst estimate of 23 cents on revenue of $108.9 million.
CVLT stock price has accumulatively risen 31.81%; the latest CLVT stock price of $53.00 is 71.13% higher than its 52-week low of $30.97 and 4.49% off its 52-week high of $55.49; The stock is traded above its 50-day moving average of $46.24 and 200-day moving average of $48.59. CLVT stock is priced expensively at a trailing P/E multiple of 71.62x versus the peer group average of 8.85x while reasonablely at a PEG ratio of 2.08 versus the peer group average of 3.53. CommVault Systems has a market cap of $2.38 billion.
According to the data provided by FactSet Research, the average target of CVLT stock price is $55.45, representing a 4.62% upside potential over the current stock price.
Mentor Graphics Corp. (MENT), another best stocks in the software industry, is given an average rating of “Overweight” by 8 analysts. Mentor Graphics reported a 20% positive earnings surprise for the quarter ended April 31, 2012. For the quarter ended July 31,2012, Mentor Graphics is expected to post earnings of 17 cents; the company posted earnings of 11 cents for the same period of last year. For the current year, Mentor Graphics is expected to realize earnings of $1.38, and it reported earnings of $1.13 for last year.
Production innovation: Mentor Graphic, the leader in electronic hardware and software design solutions recently introduced the industry’s first general purpose 1D-3D CFD simulation software solution. Mentor Graphics announced acquisition of Flowmaster Ltd. in January 2012, the industry’s leading general purpose 1D systems simulation software used for all industry sectors. This allowed the company to further advance its strategy of putting upfront analysis into the hands of the systems engineer.
Mentor Graphic provided solutions and services to the world’s most successful electronics, semiconductor and systems companies. Mazda Motor Corporation recently chose the company’s Volcano™ Network Architect (VNA) software to verify their network bandwidth usage. This made the management and maintenance of Mazda’s distributed network solutions more efficient.
As a leading provider of embedded software solutions, the company also announced that over the past three months it has added and improved support for 42 embedded development boards from leading microprocessor companies
The latest MENT stock closing price of $15.71 is 80.37% higher than its 52-week low of $8.71 and slightly off its 52-week high of $15.85; The stock is traded above its 50-day moving average of $14.92 and 200-day moving average of $14.04. MENT stock is priced expensively at a trailing P/E multiple of 15.60x versus the peer group average of 9.99x and a PEG ratio of 1.68 versus the peer group average of 0.96. Mentor Graphics has a market cap of $1.72 billion. The average target of MENT stock is $18.36, representing a 16.87% upside potential over the current stock price.
So, we see, the reasons why the two stocks talked about above are recognized as the best stocks in the software industry at this moment are for their solid business growth and better-than-expected financial results. To invest in a stock, you’d better spend some time in its fundamentals and do some research on its charts, rather than just based on a suggestion.