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

Zacks Equity Research
·3 min read

In the latest trading session, CrowdStrike Holdings (CRWD) closed at $134.54, marking a -0.44% move from the previous day. This move lagged the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 0.19%.

Heading into today, shares of the cloud-based security company had lost 2.5% over the past month, lagging the Computer and Technology sector's gain of 7.19% and the S&P 500's gain of 4.79% 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CRWD is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CRWD is holding a Forward P/E ratio of 2133.79. This represents a premium compared to its industry's average Forward P/E of 82.51.

We can also see that CRWD currently has a PEG ratio of 85.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 6.5 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 164, which puts it in the bottom 36% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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