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CrowdStrike Holdings (CRWD) Laps the Stock Market: Here's Why

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In the latest trading session, CrowdStrike Holdings (CRWD - Free Report) closed at $348.04, marking a +1.93% move from the previous day. This change outpaced the S&P 500's 0.12% gain on the day. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq lost 0.23%.

Coming into today, shares of the cloud-based security company had lost 12.04% in the past month. In that same time, the Computer and Technology sector lost 3.73%, while the S&P 500 lost 3.45%.

Analysts and investors alike will be keeping a close eye on the performance of CrowdStrike Holdings in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.85, showcasing a 10.53% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.03 billion, reflecting a 22.28% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.74 per share and revenue of $3.93 billion. These totals would mark changes of +21.04% and +28.58%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CrowdStrike Holdings. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.93% higher. CrowdStrike Holdings is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note CrowdStrike Holdings's current valuation metrics, including its Forward P/E ratio of 91.3. For comparison, its industry has an average Forward P/E of 27.61, which means CrowdStrike Holdings is trading at a premium to the group.

We can additionally observe that CRWD currently boasts a PEG ratio of 2.65. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 34, this industry ranks in the top 14% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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