CrowdStrike Holdings (CRWD) Gains But Lags Market: What You Should Know
CrowdStrike Holdings (CRWD) closed the most recent trading day at $200.39, moving +0.5% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.99%. At the same time, the Dow added 2.81%, and the tech-heavy Nasdaq gained 0.13%.
Coming into today, shares of the cloud-based security company had lost 9.35% in the past month. In that same time, the Computer and Technology sector lost 11.59%, while the S&P 500 lost 8.06%.
Investors will be hoping for strength from CrowdStrike Holdings as it approaches its next earnings release. On that day, CrowdStrike Holdings is projected to report earnings of $0.24 per share, which would represent year-over-year growth of 140%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $464.82 million, up 53.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.12 per share and revenue of $2.16 billion. These totals would mark changes of +67.16% and +48.59%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CrowdStrike Holdings. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CrowdStrike Holdings is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CrowdStrike Holdings's current valuation metrics, including its Forward P/E ratio of 177.46. For comparison, its industry has an average Forward P/E of 52.86, which means CrowdStrike Holdings is trading at a premium to the group.
It is also worth noting that CRWD currently has a PEG ratio of 4.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 3.01 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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