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CrowdStrike Holdings (CRWD) Outperforms Broader Market: What You Need to Know

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The latest trading session saw CrowdStrike Holdings (CRWD - Free Report) ending at $348.75, denoting a +0.82% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.49%, and the Nasdaq, a tech-heavy index, added 0.65%.

Shares of the cloud-based security company have appreciated by 22.39% over the course of the past month, outperforming the Computer and Technology sector's gain of 7.36% and the S&P 500's gain of 5.78%.

Investors will be eagerly watching for the performance of CrowdStrike Holdings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on June 4, 2024. The company is predicted to post an EPS of $0.89, indicating a 56.14% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $904.82 million, showing a 30.65% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.90 per share and revenue of $3.97 billion. These totals would mark changes of +26.21% and +29.82%, respectively, from last year.

Any recent changes to analyst estimates for CrowdStrike Holdings should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. CrowdStrike Holdings currently has a Zacks Rank of #2 (Buy).

Digging into valuation, CrowdStrike Holdings currently has a Forward P/E ratio of 88.61. This indicates a premium in contrast to its industry's Forward P/E of 30.53.

We can also see that CRWD currently has a PEG ratio of 3.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.72.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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