Back to top

Image: Bigstock

CrowdStrike Holdings (CRWD) Declines More Than Market: Some Information for Investors

Read MoreHide Full Article

CrowdStrike Holdings (CRWD - Free Report) ended the recent trading session at $484.62, demonstrating a -2.28% change from the preceding day's closing price. This change lagged the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.67%.

Prior to today's trading, shares of the cloud-based security company had gained 15.86% outpaced the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.

Investors will be eagerly watching for the performance of CrowdStrike Holdings in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.94, signifying a 1.08% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.21 billion, showing a 20.23% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.67 per share and a revenue of $4.78 billion, signifying shifts of -6.62% and +20.88%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for CrowdStrike Holdings. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 30.2% higher. CrowdStrike Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note CrowdStrike Holdings's current valuation metrics, including its Forward P/E ratio of 135. This indicates a premium in contrast to its industry's Forward P/E of 69.78.

Investors should also note that CRWD has a PEG ratio of 6.75 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.86.

The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 199, placing it within the bottom 20% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


CrowdStrike (CRWD) - free report >>

Published in