Austin, Texas-based CrowdStrike Holdings, Inc. (CRWD) is a cybersecurity solutions provider. Its unified platform offers cloud-delivered protection of endpoints, cloud workloads, identity, and data. Valued at a market cap of $78.4 billion, the company is a leader in next-generation endpoint protection, threat intelligence, and cyber-attack response services.
CrowdStrike has outpaced the broader market by a huge margin over the past year. CRWD stock has soared 25.3% on a YTD basis and 71.3% over the past 52-week period, outpacing the S&P 500 Index’s ($SPX) 24.3% gains on a YTD basis and 35.8% returns over the past year.
Zooming in further, CrowdStrike has also outperformed the iShares Cybersecurity and Tech ETF’s (IHAK) 12.1% gains in 2024 and 35% returns over the past year.
CrowdStrike Holdings stock prices rose 2.8% after the release of its Q2 earnings on Aug. 28. Driven by strong growth in subscriptions and heightened demand for its cybersecurity solutions, CrowdStrike reported a staggering 31.7% year-over-year growth in total revenues, totaling $963.9 million. Also, as of Jul. 31, its ARR grew approximately 32% year-over-year to $3.9 billion, of which $217.6 million was net new ARR added during the quarter. Moreover, it reported an impressive 40.5% year-over-year surge in adjusted EPS, reaching $1.04 exceeding analysts’ estimates. However, despite the robust performance, CrowdStrike reduced its full-year guidance owing to incentives for a customer commitment package after a widespread outage on Jul. 19.
For the current fiscal year, ending in January 2025, analysts expect CRWD to report a 4% year-over-year growth in EPS to $0.52. The company’s earnings surprise history is mixed. It has surpassed Wall Street’s bottom-line estimates in three of the past four quarters while missing on another occasion.
CRWD has a consensus “Strong Buy” rating overall. Among the 43 analysts covering the stock, 34 advise “Strong Buy,” three recommend “Moderate Buy,” and six suggest a “Hold” rating.
On Nov. 4, JMP Securities analyst Trevor Walsh reiterated a “Market Outperform” rating on CRWD with a price target of $400.
The mean price target of $325.54 represents a just 1.7% premium to current price levels. The Street-high target of $424 suggests a potential upside of 32.5%.
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