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

Zacks Equity Research

CrowdStrike Holdings (CRWD) closed at $76.23 in the latest trading session, marking a -1.19% move from the prior day. This move lagged the S&P 500's daily gain of 3.15%. At the same time, the Dow added 3.85%, and the tech-heavy Nasdaq gained 2.44%.

Prior to today's trading, shares of the cloud-based security company had gained 21.58% over the past month. This has outpaced the Computer and Technology sector's gain of 5.44% and the S&P 500's gain of 0.38% in that time.

Wall Street will be looking for positivity from CRWD as it approaches its next earnings report date. This is expected to be June 2, 2020. In that report, analysts expect CRWD to post earnings of -$0.06 per share. This would mark year-over-year growth of 87.23%. Our most recent consensus estimate is calling for quarterly revenue of $165.77 million, up 72.53% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.12 per share and revenue of $729.14 million. These totals would mark changes of +71.43% and +51.46%, respectively, from last year.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 currently a Zacks Rank #2 (Buy).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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