CrowdStrike Holdings, Inc. (CRWD) is a cybersecurity company that provides cloud-delivered solutions for endpoint protection, threat intelligence, and cyberattack response. Founded in 2011, CrowdStrike is headquartered in Austin, Texas, and has become a leader in the cybersecurity industry. With a market cap of $54.04 billion, the company is known for its innovative Falcon platform, which leverages artificial intelligence to prevent and detect threats, protecting businesses worldwide from sophisticated cyber threats.
CRWD shares have significantly outperformed the broader market over the last year. CRWD has gained 47.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.8%. However, in 2024, the stock declined 13%, lagging behind SPX's 8.7% rise on a YTD basis.
Zooming in further, CRWD has outperformed the iShares Expanded Tech-Software Sector ETF (IGV) over the past year. The exchange-traded fund has gained 12.4% compared to CRWD’s close to 50% returns for the period. However, the stock's loss on a YTD basis is much higher than the exchange-traded fund's 3.9% decline over the same time frame.
CrowdStrike dropped over 9% after reports emerged that Delta Air Lines is seeking compensation from the company and Microsoft (MSFT) for an IT outage that caused an operational meltdown.
CRWD reported Q1 earnings on Jun. 4. Adjusted EPS and revenue for the period were $0.93 and $921 million, exceeding analysts' forecasts of $0.89 and $904.80 million. The company expects revenue in the range of $958.3 million to $961.2 million for the fiscal second quarter. Also, it expects full-year earnings from $3.93 to $4.03 per share, with revenue ranging from $3.98 billion to $4.01 billion. Following the release of these results, the stock gained 12% in the next trading session.
For the current fiscal year, ending in January 2025, analysts expect CRWD's EPS to grow 74% year over year to $0.87 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 41 analysts covering CRWD stock, the consensus rating is a “Strong Buy.” That’s based on 32 “Strong Buys,” three “Moderate Buys” ratings, and six “Holds.”
This configuration is less bullish than three months ago, with 35 analysts suggesting a “Strong Buy.”
On Aug. 2, Wedbush analyst Imtiaz Koujalgi maintained a “Buy” rating on CrowdStrike with a price target of $315, implying a potential upside of 41.9% from current levels.
The mean price target of $361.32 represents a 62.7% premium to CRWD’s current price levels. The Street-high price target of $450 suggests an ambitious upside potential of 102.7%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
