As industry rival Palo Alto Networks releases earnings after the close and cybersecurity threats rise alongside the boom in artificial intelligence, CrowdStrike has teamed up with Google Cloud, aiming to transform AI-native cybersecurity. CRWD stock is poised to unleash a new breakout as it edges out PANW stock for top billing among cybersecurity stocks.
With a near-perfect 98 Composite Rating, CrowdStrike outpaces the 97 rating for Palo Alto Networks. Alone among cybersecurity firms, CRWD stock also earns a spot on IBD Leaderboard watchlist.
CrowdStrike clearly outshines Palo Alto Networks on IBD's premier stock screens. While Palo Alto stock fails to make any of those lists, CrowdStrike lands on the IBD 50, IBD Big Cap 20 and IBD Sector Leaders, our most stringent screen.
Palo Alto reports after the close to kick off the new week, and CrowdStrike unveils its latest performance numbers of June 4.
In its most recent quarterly report on March 5, the Austin, Texas-based firm generated 102% earnings growth to 95 cents a share. That marked a third straight quarter of triple-digit growth. Revenue rose 33% to $845.3 million.
Analysts forecast 57% earnings growth to 89 cents a share when CrowdStrike reports next month. Wall Street expects a 27% EPS increase for the full fiscal year ending in January.
CrowdStrike, Google Cloud AI Partnership
Basking in a generative AI glow in the wake of the RSA Conference, CrowdStrike was featured as the IBD Stock Of The Day on May 14.
On May 9, CrowdStrike and Alphabet-owned Google Cloud announced the expansion of their existing strategic partnership. The enhanced collaboration leverages the CrowdStrike Falcon platform with the Google Cloud Security Operations platform.
The arrangement combines AI-powered Google Cloud services and Google Cloud's Security Operations platform with CrowdStrike's expertise in detecting and stopping cybersecurity threats.
Strong Demand Lifts CrowdStrike Toward Breakout
Including CrowdStrike and Palo Alto, no cybersecurity stocks made this month's list of new buys by the best mutual funds. But 62 funds with an A+ rating from IBD have a position in CRWD stock.
Further showing demand, CrowdStrike sports a B Accumulation/Distribution Rating. It has also seen for quarters of rising fund ownership. By contrast, Palo Alto stock has seen zero quarters of rising fund ownership, but it does have a B+ Accumulation/Distribution Rating.
With its relative strength line closing in on a 52-week high, CrowdStrike is back above its 50-day moving average as it has builds a second-stage cup pattern. The buy point is 365.
In a sign of rebounding technical strength, the 21-day exponential moving average stands poised to overtake the longer-term 50-day line.
CrowdStrike partner Google stock continues to rise, hitting an all-time high Monday before easing back to close below it.
Meanwhile, shares of Palo Alto Networks rose nearly 2%, putting the stock 15% below a 380.84 buy point in a third-stage consolidation. Now Wall Street begins to digest Palo Alto's after-the-close earnings report.
Follow Matthew Galgani on X, formerly Twitter, at @IBD_MGalgani.
