CrowdStrike Holdings (CRWD) ended the recent trading session at $421.73, demonstrating a -3.9% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 1.43%.
Shares of the cloud-based security company witnessed a loss of 3.88% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.75%, and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of CrowdStrike Holdings in its upcoming earnings disclosure. 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 22.45% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.71 per share and a revenue of $4.8 billion, signifying shifts of -5.6% and 0%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. Right now, CrowdStrike Holdings possesses a Zacks Rank of #5 (Strong Sell).
Looking at valuation, CrowdStrike Holdings is presently trading at a Forward P/E ratio of 91.97. This denotes a premium relative to the industry average Forward P/E of 47.58.
Also, we should mention that CRWD has a PEG ratio of 4.67. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Security industry stood at 2.49 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 16% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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CrowdStrike (CRWD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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