U.S. Markets closed
  • S&P 500

    3,298.46
    +51.87 (+1.60%)
     
  • Nasdaq

    10,913.56
    +241.26 (+2.26%)
     
  • Russell 2000

    1,474.91
    +23.09 (+1.59%)
     
  • Crude Oil

    40.04
    -0.27 (-0.67%)
     
  • Gold

    1,864.30
    -12.60 (-0.67%)
     
  • Silver

    22.99
    -0.21 (-0.91%)
     
  • EUR/USD

    1.1635
    -0.0041 (-0.3490%)
     
  • 10-Yr Bond

    0.6590
    -0.0070 (-1.05%)
     
  • Vix

    26.38
    -2.13 (-7.47%)
     
  • GBP/USD

    1.2744
    -0.0007 (-0.0586%)
     
  • BTC-USD

    10,737.01
    +40.01 (+0.37%)
     
  • CMC Crypto 200

    230.19
    +12.36 (+5.67%)
     
  • FTSE 100

    5,842.67
    +19.89 (+0.34%)
     
  • Nikkei 225

    23,204.62
    +116.82 (+0.51%)
     

Did You Miss CrowdStrike Holdings' (NASDAQ:CRWD) 32% Share Price Gain?

Simply Wall St

Passive investing in index funds can generate returns that roughly match the overall market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the CrowdStrike Holdings, Inc. (NASDAQ:CRWD) share price is up 32% in the last year, clearly besting the market return of around 15% (not including dividends). So that should have shareholders smiling. We'll need to follow CrowdStrike Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

See our latest analysis for CrowdStrike Holdings

CrowdStrike Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year CrowdStrike Holdings saw its revenue grow by 88%. That's stonking growth even when compared to other loss-making stocks. The solid 32% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. So quite frankly it could be a good time to investigate CrowdStrike Holdings in some detail. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
earnings-and-revenue-growth

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So it makes a lot of sense to check out what analysts think CrowdStrike Holdings will earn in the future (free profit forecasts).

A Different Perspective

CrowdStrike Holdings boasts a total shareholder return of 32% for the last year. And the share price momentum remains respectable, with a gain of 58% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 4 warning signs for CrowdStrike Holdings you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.