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CrowdStrike (CRWD) Up 145% YTD: Will It Carry Momentum in 2024?
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CrowdStrike (CRWD - Free Report) has witnessed a remarkable run, showcasing a staggering 145% year-to-date surge in its stock price. The stock has also outperformed the Zacks Computer and Technology sector, which has gained 52.3% over the same time frame.
The surge reflects investors' confidence in CrowdStrike's strategic positioning, robust financial performance and pivotal role in shaping the endpoint security, threat intelligence, and cyber attack response arena.
However, the pressing question persists: Will CrowdStrike be able to maintain this momentum through 2024?
CrowdStrike’s robust stock price performance has been primarily driven by its better-than-expected financial results and impressive growth profile.
CRWD is a global leader in next-generation endpoint protection, threat intelligence and cyberattack response services. The company is benefiting from the rising demand for cyber-security solutions due to the slew of data breaches and the increasing necessity for security and networking products amid the growing hybrid working trend. The continued digital transformation and cloud migration strategies adopted by organizations are key growth drivers.
CrowdStrike’s rich experience in the security space and continued delivery of mission-critical solutions will help it maintain and grow its market share. Per the Grand View Research report, the global cybersecurity market is projected to witness a CAGR of 12.3% from 2023 to 2030. The prediction bodes well for the company, which has a diversified product portfolio for large- and mid-sized organizations to protect their sensitive data.
The company is also capitalizing on its Falcon Platform. CRWD’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps add users. It set itself apart from other players in the space by providing a single lightweight platform that detects and mitigates threats in real-time, a step up from older signature-based models.
CrowdStrike is also strengthening its portfolio through a battery of acquisitions. The acquisition of Reposify in 2022, Humio in 2021 and Preempt in 2020 has enhanced its capabilities in identity-based threat prevention, access control, security information event management and external attack surface management.
The latest in que is the agreement to acquire Bionic, which will enable CRWD to expand toward Application Security Posture Management. Collectively, these capabilities position the company uniquely to benefit from the increasing demand for digital transformation and cloud migration strategies adopted by organizations.
CrowdStrike has been witnessing top and bottom-line growth for the past several quarters due to the strong demand environment for cyber-security solutions and its sustained focus on enhancing product offerings through in-house research and development and acquisitions.
In the latest reported financial results for the third quarter of fiscal 2024, the company’s revenues and non-GAAP earnings surged 35% and 105%, respectively, on a year-over-year basis. For fiscal 2024, CrowdStrike expects revenues between $3,046.8 million and $3,050.2 million. The Zacks Consensus Estimate for the same is pegged at $3.1billion, indicating growth of 36% year over year.
Considering CrowdStrike’s growth prospects, the share price of the company is expected to rise further in 2024. Therefore, investors should consider adding the stock to their portfolio right now.
Additionally, CRWD currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Other Stocks to Consider
Some other top-ranked stocks from the broader technology sector are Kanzhun (BZ - Free Report) , Ceridian HCM and CommVault Systems (CVLT - Free Report) , each sporting a Zacks Rank #1 at present. Shares of Ceridian HCM and CommVault Systems have returned 5.1% and 21.1%, respectively, while shares of Kanzhun have declined 22.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kanzhun's fourth-quarter 2023 earnings has been revised downward by 2 cents to 16 cents per share in the past 30 days.
The Zacks Consensus Estimate for Ceridian HCM’s fourth-quarter fiscal 2023 earnings has been revised by a penny northward to 32 cents per share in the past 60 days.
The Zacks Consensus Estimate for CommVault Systems’ third-quarter 2024 earnings has remained unchanged for the past 90 days at 73 cents per share.
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CrowdStrike (CRWD) Up 145% YTD: Will It Carry Momentum in 2024?
CrowdStrike (CRWD - Free Report) has witnessed a remarkable run, showcasing a staggering 145% year-to-date surge in its stock price. The stock has also outperformed the Zacks Computer and Technology sector, which has gained 52.3% over the same time frame.
The surge reflects investors' confidence in CrowdStrike's strategic positioning, robust financial performance and pivotal role in shaping the endpoint security, threat intelligence, and cyber attack response arena.
However, the pressing question persists: Will CrowdStrike be able to maintain this momentum through 2024?
CrowdStrike Price and Consensus
CrowdStrike price-consensus-chart | CrowdStrike Quote
Strong Fundamental Drivers to Aid CRWD’s Surge
CrowdStrike’s robust stock price performance has been primarily driven by its better-than-expected financial results and impressive growth profile.
CRWD is a global leader in next-generation endpoint protection, threat intelligence and cyberattack response services. The company is benefiting from the rising demand for cyber-security solutions due to the slew of data breaches and the increasing necessity for security and networking products amid the growing hybrid working trend. The continued digital transformation and cloud migration strategies adopted by organizations are key growth drivers.
CrowdStrike’s rich experience in the security space and continued delivery of mission-critical solutions will help it maintain and grow its market share. Per the Grand View Research report, the global cybersecurity market is projected to witness a CAGR of 12.3% from 2023 to 2030. The prediction bodes well for the company, which has a diversified product portfolio for large- and mid-sized organizations to protect their sensitive data.
The company is also capitalizing on its Falcon Platform. CRWD’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps add users. It set itself apart from other players in the space by providing a single lightweight platform that detects and mitigates threats in real-time, a step up from older signature-based models.
CrowdStrike is also strengthening its portfolio through a battery of acquisitions. The acquisition of Reposify in 2022, Humio in 2021 and Preempt in 2020 has enhanced its capabilities in identity-based threat prevention, access control, security information event management and external attack surface management.
The latest in que is the agreement to acquire Bionic, which will enable CRWD to expand toward Application Security Posture Management. Collectively, these capabilities position the company uniquely to benefit from the increasing demand for digital transformation and cloud migration strategies adopted by organizations.
CrowdStrike has been witnessing top and bottom-line growth for the past several quarters due to the strong demand environment for cyber-security solutions and its sustained focus on enhancing product offerings through in-house research and development and acquisitions.
In the latest reported financial results for the third quarter of fiscal 2024, the company’s revenues and non-GAAP earnings surged 35% and 105%, respectively, on a year-over-year basis. For fiscal 2024, CrowdStrike expects revenues between $3,046.8 million and $3,050.2 million. The Zacks Consensus Estimate for the same is pegged at $3.1billion, indicating growth of 36% year over year.
Considering CrowdStrike’s growth prospects, the share price of the company is expected to rise further in 2024. Therefore, investors should consider adding the stock to their portfolio right now.
Additionally, CRWD currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Other Stocks to Consider
Some other top-ranked stocks from the broader technology sector are Kanzhun (BZ - Free Report) , Ceridian HCM and CommVault Systems (CVLT - Free Report) , each sporting a Zacks Rank #1 at present. Shares of Ceridian HCM and CommVault Systems have returned 5.1% and 21.1%, respectively, while shares of Kanzhun have declined 22.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kanzhun's fourth-quarter 2023 earnings has been revised downward by 2 cents to 16 cents per share in the past 30 days.
The Zacks Consensus Estimate for Ceridian HCM’s fourth-quarter fiscal 2023 earnings has been revised by a penny northward to 32 cents per share in the past 60 days.
The Zacks Consensus Estimate for CommVault Systems’ third-quarter 2024 earnings has remained unchanged for the past 90 days at 73 cents per share.