CrowdStrike Holdings, Inc. (CRWD), established in 2011 and headquartered in Austin, Texas, is a global leader in cybersecurity and threat intelligence. With a market cap of $87.4 billion, CRWD specializes in endpoint protection, ensuring the security, stability, and resilience of digital environments worldwide.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” and CrowdStrike Holdings fits this category. CrowdStrike’s strong market position and commitment to innovation in cybersecurity and threat intelligence solidify its role as a leader in the digital security ecosystem, safeguarding organizations worldwide with advanced protection against cyber threats and ensuring the resilience of digital operations.
CrowdStrike Holdings’ shares are trading 12.3% below their 52-week high of $398.33, achieved on Jul. 9. Over the past three months, the stock has risen by 24.5%, significantly outperforming the broader S&P 500 Index ($SPX), which gained 2.5% during the same period.
Over the past six months, CRWD has dropped 8.8%, lagging behind SPX's 8.2% return. However, over the past year, CRWD recorded a robust 36.8% gain, surpassing SPX's impressive 23.8% growth during the same period.
The stock has remained above its 50-day moving average since mid-September and its 200-day moving average since early November, signaling a sustained bullish trend.
CrowdStrike Holdings has outperformed the broader index, driven by strong revenue growth, consistent earnings beats, a solid cybersecurity market position, and optimistic management guidance. Despite exceeding Wall Street expectations in its Q3 earnings report on Nov. 26, the company's stock price fell 4.6% the following day. The company posted $1.01 billion in revenue, marking a 28.5% year-over-year increase and beating estimates by 2.8%. Non-GAAP EPS reached $0.93, surpassing analyst expectations by 14.9%.
Adjusted operating income totaled $194.9 million, with a 19.3% margin, exceeding estimates by 15.1%. While Q4 revenue guidance of $1.03 billion was in line with forecasts, the adjusted EPS guidance of $0.85 missed expectations by $0.01. Nevertheless, management raised its full-year adjusted EPS guidance by 3.3% to $3.75 at the midpoint.
CRWD's competitor, Fortinet, Inc. (FTNT), has significantly outperformed in comparison. FTNT's shares have gained 62.5% over the past 52 weeks.
Given CRWD's robust performance relative to the broader sector, analysts are optimistic about the stock. Of the 44 analysts covering the stock, the consensus rating is “Strong Buy.” It has a mean price target of $380, suggesting a potential upside of 8.8% from its current level.
