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CrowdStrike Holdings (CRWD) Outpaces Stock Market Gains: What You Should Know

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Zacks Equity Research
·3 min read
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CrowdStrike Holdings (CRWD) closed the most recent trading day at $234.80, moving +1.49% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.17%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.38%.

Coming into today, shares of the cloud-based security company had gained 2.18% in the past month. In that same time, the Computer and Technology sector gained 8.01%, while the S&P 500 gained 2.33%.

Wall Street will be looking for positivity from CRWD as it approaches its next earnings report date. This is expected to be March 16, 2021. On that day, CRWD is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 550%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $250.92 million, up 64.96% from the year-ago period.

Any recent changes to analyst estimates for CRWD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 28.32% higher. CRWD currently has a Zacks Rank of #2 (Buy).

In terms of valuation, CRWD is currently trading at a Forward P/E ratio of 596.6. For comparison, its industry has an average Forward P/E of 84.54, which means CRWD is trading at a premium to the group.

Also, we should mention that CRWD has a PEG ratio of 23.86. 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 was holding an average PEG ratio of 4.55 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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