Forget mega-cap technology stocks such as %Nvidia (NASDAQ: $NVDA), %Microsoft (NASDAQ: $MSFT), and %Amazon (NASDAQ: $AMZN). For really big returns, consider small-cap software firm %CommvaultSystems (NASDAQ: $CVLT).
Consider that this year, CVLT stock is up 23%, trouncing the returns of much larger technology concerns and the benchmark S&P 500 index that has gained only 2% year-to-date.
Look out further and Commvault’s returns are even better. Over the past 12 months, the share price has risen 59%, and through five years the stock has gained 395%.
Headquartered in New Jersey, Commvault Systems is a software company that specializes in data protection, data management, and %Cybersecurity.
As one might expect, the company’s services are in demand these days with online threats worsening and the need for data protection at an all-time high.
This has led Commvault Systems to expand aggressively in recent years. The company now has 29 offices globally, including in China, Dubai, Israel, France, Germany, and Brazil.
Founded in 1988, Commvault was initially a business unit of telecommunications giant AT&T (NYSE: $T) before being sold and spun off as its own entity.
Financial results have been robust in recent years and Commvault has also gone on an acquisition spree to drive its growth, snapping up several smaller cybersecurity firms.
The company is also branching out into cloud platforms and offering protection of cloud data to its largely enterprise base of customers.
Even with the aggressive growth and expansion, CVLT remains a small-cap stock with a current market capitalization of only $8.28 billion U.S.
If there’s a concern with Commvault’s stock it is that the shares currently trade at nosebleed levels, changing hands at 111 times future earnings estimates.
The rich valuation means that a pullback in CVLT stock might occur in coming months, especially if the broader market declines.
Investors looking for a strong tech stock may want to treat any such pullback as a buying opportunity.
