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Why CrowdStrike Holdings (CRWD) Outpaced the Stock Market Today

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CrowdStrike Holdings (CRWD - Free Report) closed the latest trading day at $280.24, indicating a +1.85% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.01%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.08%.

Shares of the cloud-based security company have appreciated by 3.21% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21%.

The upcoming earnings release of CrowdStrike Holdings will be of great interest to investors. The company is expected to report EPS of $0.83, up 1.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $982.24 million, up 24.97% from the year-ago period.

CRWD's full-year Zacks Consensus Estimates are calling for earnings of $3.67 per share and revenue of $3.9 billion. These results would represent year-over-year changes of +18.77% and +27.51%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for CrowdStrike Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.33% decrease. Right now, CrowdStrike Holdings possesses a Zacks Rank of #4 (Sell).

Digging into valuation, CrowdStrike Holdings currently has a Forward P/E ratio of 75.02. This represents a premium compared to its industry's average Forward P/E of 30.46.

It's also important to note that CRWD currently trades at a PEG ratio of 2.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.01.

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 29% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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