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

Zacks Equity Research
·3 min read

CrowdStrike Holdings (CRWD) closed at $126.86 in the latest trading session, marking a +1.92% move from the prior day. This change outpaced the S&P 500's 1.78% gain on the day. At the same time, the Dow added 2.06%, and the tech-heavy Nasdaq gained 1.85%.

Heading into today, shares of the cloud-based security company had lost 14.09% over the past month, lagging the Computer and Technology sector's loss of 0.35% and the S&P 500's loss of 1.1% in that time.

CRWD will be looking to display strength as it nears its next earnings release. On that day, CRWD is projected to report earnings of $0 per share, which would represent year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $213.74 million, up 70.83% from the year-ago period.

CRWD's full-year Zacks Consensus Estimates are calling for earnings of $0.06 per share and revenue of $822.01 million. These results would represent year-over-year changes of +114.29% and +70.75%, respectively.

It is also important to note the recent changes to analyst estimates for CRWD. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CRWD is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, CRWD currently has a Forward P/E ratio of 1965.32. For comparison, its industry has an average Forward P/E of 79.5, which means CRWD is trading at a premium to the group.

Also, we should mention that CRWD has a PEG ratio of 78.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CRWD's industry had an average PEG ratio of 6.38 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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.

To follow CRWD in the coming trading sessions, be sure to utilize Zacks.com.


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