In the latest trading session, CrowdStrike Holdings (CRWD) closed at $444.91, marking a +0.98% move from the previous day. This change outpaced the S&P 500's 0.64% loss on the day. At the same time, the Dow lost 0.24%, and the tech-heavy Nasdaq lost 0.74%.
Prior to today's trading, shares of the cloud-based security company had gained 36.98% over the past month. This has outpaced the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 0.38% in that time.
The upcoming earnings release of CrowdStrike Holdings will be of great interest to investors. The company's upcoming EPS is projected at $0.66, signifying a 29.03% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.1 billion, up 19.92% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.44 per share and revenue of $4.78 billion, which would represent changes of -12.47% and +20.96%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for CrowdStrike Holdings. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 9.75% higher. CrowdStrike Holdings is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that CrowdStrike Holdings has a Forward P/E ratio of 128.1 right now. This denotes a premium relative to the industry's average Forward P/E of 66.83.
We can additionally observe that CRWD currently boasts a PEG ratio of 5.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security industry currently had an average PEG ratio of 3.34 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 40% of over 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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