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

CrowdStrike Holdings (CRWD) closed at $196.89 in the latest trading session, marking a -1.76% move from the prior day. This move lagged the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.49%.

Prior to today's trading, shares of the cloud-based security company had gained 11% over the past month. This has lagged the Computer and Technology sector's gain of 12.59% and the S&P 500's gain of 11.6% in that time.

CrowdStrike Holdings will be looking to display strength as it nears its next earnings release, which is expected to be August 30, 2022. The company is expected to report EPS of $0.29, up 163.64% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $517.11 million, up 53.13% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.23 per share and revenue of $2.21 billion, which would represent changes of +83.58% and +51.94%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for CrowdStrike Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CrowdStrike Holdings is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note CrowdStrike Holdings's current valuation metrics, including its Forward P/E ratio of 162.6. This valuation marks a premium compared to its industry's average Forward P/E of 46.56.

We can also see that CRWD currently has a PEG ratio of 4.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CRWD's industry had an average PEG ratio of 2.84 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 130, putting it in the bottom 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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