CrowdStrike Holdings (CRWD) Beats Stock Market Upswing: What Investors Need to Know

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The most recent trading session ended with CrowdStrike Holdings (CRWD) standing at $306.24, reflecting a +1.3% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.

Shares of the cloud-based security company have appreciated by 12.5% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48%.

Investors will be eagerly watching for the performance of CrowdStrike Holdings in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.83, indicating a 1.22% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $982.24 million, indicating a 24.97% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.67 per share and a revenue of $3.9 billion, indicating changes of +18.77% and +27.51%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for CrowdStrike Holdings. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. CrowdStrike Holdings presently features a Zacks Rank of #4 (Sell).

In terms of valuation, CrowdStrike Holdings is presently being traded at a Forward P/E ratio of 82.43. This expresses a premium compared to the average Forward P/E of 31.87 of its industry.

Investors should also note that CRWD has a PEG ratio of 2.92 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.14 as trading concluded yesterday.