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CrowdStrike Holdings (CRWD) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, CrowdStrike Holdings (CRWD - Free Report) closed at $129.94, marking a -1.87% move from the previous day. This move lagged the S&P 500's daily loss of 0.46%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 6.06%.

Coming into today, shares of the cloud-based security company had gained 3.36% in the past month. In that same time, the Computer and Technology sector gained 0.97%, while the S&P 500 gained 0.85%.

Wall Street will be looking for positivity from CrowdStrike Holdings as it approaches its next earnings report date. This is expected to be May 31, 2023. The company is expected to report EPS of $0.50, up 61.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $674.33 million, up 38.23% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.30 per share and revenue of $3 billion, which would represent changes of +49.35% and +33.76%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for CrowdStrike Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.85% higher. CrowdStrike Holdings is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, CrowdStrike Holdings is holding a Forward P/E ratio of 57.61. Its industry sports an average Forward P/E of 41.04, so we one might conclude that CrowdStrike Holdings is trading at a premium comparatively.

We can also see that CRWD currently has a PEG ratio of 1.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.58 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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