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Buy Resurgent Cybersecurity Stock CrowdStrike Before Q1 Earnings?
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CrowdStrike (CRWD - Free Report) is set to report its first quarter fiscal 2022 financial results on Thursday, June 3. The cloud-focused cybersecurity firm has gone on a strong run over the last year and it’s still up 180% despite cooling down in 2021, along with most other growth tech names.
CRWD shares have climbed over 20% in the last two weeks, which means investors might want to take a deeper look at the stock.
Overview
CrowdStrike is a cloud-focused cybersecurity company that utilizes machine learning and AI to protect endpoints and cloud workloads. This is crucial in a cloud age that’s full of rapidly expanding endpoints that include laptops, desktops, smartphones, IoT devices, and more.
The company went public in the summer of 2019, and remote work and schooling pushed this area of the already-booming cybersecurity space to the forefront. As devices proliferate and our digitally-connected world grows more complex, it becomes more vulnerable.
CRWD’s FY20 revenue soared 93% and its FY21 sales (period ended on Jan. 31, 2021) surged another 82% from $481 million to $874 million.
CrowdStrike added around 1,500 new subscription customers last quarter to bring its total to roughly 9,900, up 82% from the prior year. The cybersecurity firm has also seen more customers adopting four or more modules.
CRWD topped our Q4 estimates back in mid-March. The company also in March completed its roughly $400 million acquisition of Humio on March 5. The firm provides high-performance cloud log management and observability technology and the deal is set to “further expand its eXtended Detection and Response (XDR) capabilities by ingesting and correlating data from any log, application or feed to deliver actionable insights and real-time protection.”
What Else
The nearby chart shows CrowdStrike stock has soared around 230% since it went public. As we mentioned at the outset, the stock has cooled down, with it up around 5% in 2021 to lag its industry’s 10%. But CRWD has mounted a bit of a comeback recently, up over 20% in two weeks to close regular hours Thursday at $222.81 a share—up 1.3% on the day, as the Nasdaq was flat.
Despite the recent climb, CrowdStrike still sits below oversold RSI (70) levels at 65. Meanwhile, its valuation still shows that it’s a growth play, trading at 33.7X forward 12-month sales. This marks a premium to its industry’s 7.8X average, but a 40% discount to its own year-long highs.
Looking ahead, Zacks estimates call for the cybersecurity firm’s adjusted Q1 earnings to climb from $0.02 a share to $0.06 on 64% strong sales. Longer-term, CrowdStrike’s full-year fiscal 2022 revenue is projected to climb 51% to $1.3 billion, with FY23 set to jump another 33% higher to $1.76 billion.
At the bottom end, CRWD’s adjusted FY22 earnings are projected to pop 11% to $0.30 a share, with FY23 then projected to soar 112% to $0.64. And investors should know CrowdStrike crushed our bottom-line estimates in the trailing four quarters.
Bottom Line
CrowdStrike’s earnings revisions help it grab a Zacks Rank #3 (Hold) at the moment. The stock also lands “F” grades for Value and Momentum in our Style Scores system, along with a “B” grade for Growth.
More broadly, 16 of the 21 brokerage ratings Zacks has for CrowdStrike are “Strong Buys,” with two more “Buys” and none below a “Hold.” Therefore, longer-term investors might want to add the stock to their watchlists heading into its Q1 release on June 3.
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Buy Resurgent Cybersecurity Stock CrowdStrike Before Q1 Earnings?
CrowdStrike (CRWD - Free Report) is set to report its first quarter fiscal 2022 financial results on Thursday, June 3. The cloud-focused cybersecurity firm has gone on a strong run over the last year and it’s still up 180% despite cooling down in 2021, along with most other growth tech names.
CRWD shares have climbed over 20% in the last two weeks, which means investors might want to take a deeper look at the stock.
Overview
CrowdStrike is a cloud-focused cybersecurity company that utilizes machine learning and AI to protect endpoints and cloud workloads. This is crucial in a cloud age that’s full of rapidly expanding endpoints that include laptops, desktops, smartphones, IoT devices, and more.
The company went public in the summer of 2019, and remote work and schooling pushed this area of the already-booming cybersecurity space to the forefront. As devices proliferate and our digitally-connected world grows more complex, it becomes more vulnerable.
CRWD’s FY20 revenue soared 93% and its FY21 sales (period ended on Jan. 31, 2021) surged another 82% from $481 million to $874 million.
CrowdStrike added around 1,500 new subscription customers last quarter to bring its total to roughly 9,900, up 82% from the prior year. The cybersecurity firm has also seen more customers adopting four or more modules.
CRWD topped our Q4 estimates back in mid-March. The company also in March completed its roughly $400 million acquisition of Humio on March 5. The firm provides high-performance cloud log management and observability technology and the deal is set to “further expand its eXtended Detection and Response (XDR) capabilities by ingesting and correlating data from any log, application or feed to deliver actionable insights and real-time protection.”
What Else
The nearby chart shows CrowdStrike stock has soared around 230% since it went public. As we mentioned at the outset, the stock has cooled down, with it up around 5% in 2021 to lag its industry’s 10%. But CRWD has mounted a bit of a comeback recently, up over 20% in two weeks to close regular hours Thursday at $222.81 a share—up 1.3% on the day, as the Nasdaq was flat.
Despite the recent climb, CrowdStrike still sits below oversold RSI (70) levels at 65. Meanwhile, its valuation still shows that it’s a growth play, trading at 33.7X forward 12-month sales. This marks a premium to its industry’s 7.8X average, but a 40% discount to its own year-long highs.
Looking ahead, Zacks estimates call for the cybersecurity firm’s adjusted Q1 earnings to climb from $0.02 a share to $0.06 on 64% strong sales. Longer-term, CrowdStrike’s full-year fiscal 2022 revenue is projected to climb 51% to $1.3 billion, with FY23 set to jump another 33% higher to $1.76 billion.
At the bottom end, CRWD’s adjusted FY22 earnings are projected to pop 11% to $0.30 a share, with FY23 then projected to soar 112% to $0.64. And investors should know CrowdStrike crushed our bottom-line estimates in the trailing four quarters.
Bottom Line
CrowdStrike’s earnings revisions help it grab a Zacks Rank #3 (Hold) at the moment. The stock also lands “F” grades for Value and Momentum in our Style Scores system, along with a “B” grade for Growth.
More broadly, 16 of the 21 brokerage ratings Zacks has for CrowdStrike are “Strong Buys,” with two more “Buys” and none below a “Hold.” Therefore, longer-term investors might want to add the stock to their watchlists heading into its Q1 release on June 3.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>