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

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CrowdStrike Holdings (CRWD - Free Report) closed at $260.03 in the latest trading session, marking a -1.35% move from the prior day. This move lagged the S&P 500's daily gain of 0.42%.

Prior to today's trading, shares of the cloud-based security company had gained 4.88% over the past month. This has outpaced the Computer and Technology sector's gain of 2.29% and the S&P 500's gain of 2.64% in that time.

CRWD will be looking to display strength as it nears its next earnings release. In that report, analysts expect CRWD to post earnings of $0.09 per share. This would mark year-over-year growth of 200%. Our most recent consensus estimate is calling for quarterly revenue of $323.97 million, up 62.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.40 per share and revenue of $1.37 billion. These totals would mark changes of +48.15% and +56.16%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for CRWD. Recent revisions tend to reflect the latest 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. The Zacks Consensus EPS estimate has moved 0.82% higher within the past month. CRWD is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that CRWD has a Forward P/E ratio of 651.71 right now. This represents a premium compared to its industry's average Forward P/E of 67.96.

Also, we should mention that CRWD has a PEG ratio of 26.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CRWD's industry had an average PEG ratio of 3.69 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 189, which puts it in the bottom 26% 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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