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CrowdStrike Holdings (CRWD) Exceeds Market Returns: Some Facts to Consider

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CrowdStrike Holdings (CRWD - Free Report) ended the recent trading session at $266.78, demonstrating a +1.61% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 1.39%.

Shares of the cloud-based security company witnessed a loss of 13.91% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.36% and the S&P 500's loss of 1.85%.

The investment community will be paying close attention to the earnings performance of CrowdStrike Holdings in its upcoming release. The company is slated to reveal its earnings on August 28, 2024. On that day, CrowdStrike Holdings is projected to report earnings of $0.98 per share, which would represent year-over-year growth of 32.43%. At the same time, our most recent consensus estimate is projecting a revenue of $958.66 million, reflecting a 31.03% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.93 per share and revenue of $3.97 billion, indicating changes of +27.18% and +30.05%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for CrowdStrike Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 5.1% fall in the Zacks Consensus EPS estimate. CrowdStrike Holdings is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that CrowdStrike Holdings has a Forward P/E ratio of 66.86 right now. Its industry sports an average Forward P/E of 29.27, so one might conclude that CrowdStrike Holdings is trading at a premium comparatively.

We can also see that CRWD currently has a PEG ratio of 3.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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