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%.
More Stock Market News from Barchart
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.