Today’s Featured Stock
Valued at $277 billion, CrowdStrike (CRWD) is a leader in next-generation endpoint protection, threat intelligence, and cyberattack response services.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. CRWD checks those boxes. The Trend Seeker issued a new “Buy” signal on Aug. 31. The stock has gained 17.78% since that signal.
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www.barchart.comBarchart’s Technical Indicators for CrowdStrike
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
CrowdStrike hit an all-time high of $273.54 on Oct. 2.
CrowdStrike has a Weighted Alpha of 158.88. CRWD has a 100% “Buy” opinion from Barchart. The stock has gained 122.15% over the past 52 weeks. CrowdStrike has its Trend Seeker “Buy” signal intact. The stock recently traded at $272.16 with a 50-day moving average of $221.57. CRWD had 14 highs and gained 27.67% in the last month. 60-month beta of 1.20. Relative Strength Index (RSI) is at 69.55. There’s a technical support level around $267.30.Don’t Forget the Fundamentals
$227 billion market capitalization. 2,534.19x trailing price-earnings ratio. Revenue is expected to grow 24.82% this year and another 22.60% next year. Earnings are estimated to increase 34.70% this year and an additional 27.85% next year.Analyst and Investor Sentiment on CrowdStrike
Wall Street analysts followed by Barchart give the stock 33 “Strong Buy,” 3 “Moderate Buy,” 12 “Hold,” and 2 “Strong Sell” opinions with price targets from $132 to $425. I find it hard to imagine that all these analysts all have a finance degree and passed the same CFA exam. How can all these “data geeks” using the same revenue, earnings, and cash flow data come up with such wide-ranging projections? Beats me!!! Value Line rates the stock “Above Average” with a price target consensus of $287. Morningstar thinks the stock is 77% overvalued with a fair value of $152. CFRA’s MarketScope rates the stock as “Buy” with a price target of $281. 163,400 investors are following the stock on Seeking Alpha which rates it as a “Hold” and has problems with its valuation. TipRanks’ analysts have a consensus of $249.88. Short interest is 2.38% of the float with 2.61 days to cover the float.The Bottom Line on CrowdStrike
I have already commented on the very wide range of opinions that Wall Street analysts have issued. However, the short sellers aren’t betting against the stock. The company exhibits stellar growth, excellent stock momentum, and strong analyst confidence, but is offset by an extremely stretched valuation and mixed profitability. Computer security is a good business to be in, and this is a leader in that industry.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten 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.