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CrowdStrike Holdings (CRWD) Dips More Than Broader Markets: What You Should Know

In the latest trading session, CrowdStrike Holdings (CRWD) closed at $179.75, marking a -1.84% move from the previous day. This change lagged the S&P 500's 0.54% loss on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq lost 2.41%.

Heading into today, shares of the cloud-based security company had lost 18.25% over the past month, lagging the Computer and Technology sector's loss of 5.55% and the S&P 500's loss of 1.04% in that time.

CRWD will be looking to display strength as it nears its next earnings release, which is expected to be March 16, 2021. On that day, CRWD is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 550%. Our most recent consensus estimate is calling for quarterly revenue of $251.08 million, up 65.06% from the year-ago period.

It is also important to note the recent changes to analyst estimates for CRWD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 7.08% lower. CRWD currently has a Zacks Rank of #3 (Hold).

In terms of valuation, CRWD is currently trading at a Forward P/E ratio of 494.92. This represents a premium compared to its industry's average Forward P/E of 73.93.

Investors should also note that CRWD has a PEG ratio of 19.8 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 currently had an average PEG ratio of 3.83 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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