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

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CrowdStrike Holdings (CRWD - Free Report) ended the recent trading session at $420.51, demonstrating a +0.79% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.36%. Meanwhile, the Dow experienced a drop of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.51%.

Prior to today's trading, shares of the cloud-based security company had gained 16.31% over the past month. This has outpaced the Computer and Technology sector's of 0% and the S&P 500's gain of 2.11% in that time.

Analysts and investors alike will be keeping a close eye on the performance of CrowdStrike Holdings in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.85, signifying a 10.53% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.03 billion, up 22.28% from the year-ago period.

It is also important to note the recent changes to analyst estimates for CrowdStrike Holdings. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there's been a 0.22% rise in the Zacks Consensus EPS estimate. CrowdStrike Holdings is currently a Zacks Rank #2 (Buy).

In terms of valuation, CrowdStrike Holdings is currently trading at a Forward P/E ratio of 95.68. This expresses a premium compared to the average Forward P/E of 31.23 of its industry.

We can also see that CRWD currently has a PEG ratio of 2.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 2.34 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% of over 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.

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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