In the latest trading session, CrowdStrike Holdings (CRWD) closed at $527.32, marking a +1.02% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.79% for the day. On the other hand, the Dow registered a gain of 1.01%, and the technology-centric Nasdaq increased by 1.15%.
The stock of cloud-based security company has risen by 10.33% in the past month, leading the Computer and Technology sector's gain of 1.2% and the S&P 500's gain of 1.27%.
The investment community will be paying close attention to the earnings performance of CrowdStrike Holdings in its upcoming release. It is anticipated that the company will report an EPS of $0.94, marking a 1.08% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, up 20.23% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.67 per share and a revenue of $4.78 billion, representing changes of -6.62% and +20.89%, respectively, from the prior year.
Any recent changes to analyst estimates for CrowdStrike Holdings should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. CrowdStrike Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).
In the context of valuation, CrowdStrike Holdings is at present trading with a Forward P/E ratio of 142.08. Its industry sports an average Forward P/E of 71.91, so one might conclude that CrowdStrike Holdings is trading at a premium comparatively.
It is also worth noting that CRWD currently has a PEG ratio of 7.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.85.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 172, positioning it in the bottom 31% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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CrowdStrike (CRWD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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