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CrowdStrike Holdings (CRWD) Gains as the Market Falls: What You Need to Know


VSrowStrike Holdings (CRWD) closed at $191.17 in the last trading session, marking a +1.02% move from the previous day. This change outpaced the S&P 500’s 0.16% loss on the day. Meanwhile, the Dow Jones gained 0.23% and the Nasdaq, a technology-heavy index, added 0.09%.

Prior to today’s trading, shares of the cloud-based security company had lost 0.5% in the past month. This was lower than the IT & Technology sector’s 12.8% gain and the S&P 500’s 8.67% gain during this period.

Wall Street will be looking for positivity from CrowdStrike Holdings as it nears its next earnings release date. That should be August 30, 2022. On that day, CrowdStrike Holdings is expected to report earnings of $0.29 per share, which would represent 163.64% year-over-year growth. Our most recent consensus estimate calls for quarterly revenue of $517.11 million, up 53.13% from the prior year period.

For the full year, our Zacks consensus estimates call for earnings of $1.23 per share and revenue of $2.21 billion, which would represent swings of +83.58% and +51, 94%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for CrowdStrike Holdings. These recent revisions tend to reflect the evolving nature of short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated to short-term stock prices. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with #1 stocks offering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has fallen 2.36% . CrowdStrike Holdings currently sports a Zacks rank of #3 (Hold).

Digging into the valuation, CrowdStrike Holdings currently has a Forward P/E ratio of 153.54. Its industry sports an average Forward P/E of 42.59, so we can conclude that CrowdStrike Holdings is trading at a premium comparatively.

It should also be noted that CRWD currently has a PEG ratio of 4. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The CRWD industry had an average PEG ratio of 2.8 at yesterday’s close.

The Internet – Software industry is part of the IT and technology sector. This group has a Zacks Industry Rank of 159, which places it in the bottom 37% of all 250+ industries.

The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to track all of these stock movement metrics, and more, at Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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