In the latest close session, CrowdStrike Holdings (CRWD) was up +1.71% at $418.20. The stock exceeded the S&P 500, which registered a gain of 0.26% for the day. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.36%.
Prior to today's trading, shares of the cloud-based security company had lost 5.66% lagged the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
Investors will be eagerly watching for the performance of CrowdStrike Holdings in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.07, signifying a 46.58% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.36 billion, up 23.43% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.85 per share and revenue of $5.91 billion, indicating changes of +30.03% and +22.78%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for CrowdStrike Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. CrowdStrike Holdings is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, CrowdStrike Holdings is currently being traded at a Forward P/E ratio of 84.74. This valuation marks a premium compared to its industry average Forward P/E of 32.54.
It is also worth noting that CRWD currently has a PEG ratio of 3.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security was holding an average PEG ratio of 2.41 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 39% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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CrowdStrike (CRWD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).