CrowdStrike Holdings (CRWD) ended the recent trading session at $463.87, demonstrating a -3.14% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.01% for the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.44%.
Prior to today's trading, shares of the cloud-based security company had lost 7.82% lagged the Computer and Technology sector's loss of 0.69% and the S&P 500's gain of 0.86%.
The investment community will be paying close attention to the earnings performance of CrowdStrike Holdings in its upcoming release. The company is predicted to post an EPS of $1.1, indicating a 6.8% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.3 billion, up 22.42% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.71 per share and revenue of $4.8 billion, indicating changes of -5.6% and +21.43%, respectively, compared to the previous 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.63% upward. CrowdStrike Holdings is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, CrowdStrike Holdings is currently exchanging hands at a Forward P/E ratio of 128.98. This indicates a premium in contrast to its industry's Forward P/E of 55.69.
We can additionally observe that CRWD currently boasts a PEG ratio of 6.56. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Security stocks are, on average, holding a PEG ratio of 2.8 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 86, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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