CrowdStrike Holdings (CRWD) closed the most recent trading day at $248.87, moving -4.73% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.
Prior to today's trading, shares of the cloud-based security company had gained 7.72% outpaced the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
Analysts and investors alike will be keeping a close eye on the performance of CrowdStrike Holdings in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.31, signifying a 29.17% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.53 billion, indicating a 23.8% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.26 per share and a revenue of $6 billion, representing changes of +35.48% and +24.64%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CrowdStrike Holdings. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, CrowdStrike Holdings holds a Zacks Rank of #5 (Strong Sell).
Looking at valuation, CrowdStrike Holdings is presently trading at a Forward P/E ratio of 207.7. This signifies a premium in comparison to the average Forward P/E of 57.68 for its industry.
One should further note that CRWD currently holds a PEG ratio of 7.77. 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 3.2 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 31% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).