CrowdStrike Holdings (CRWD) shares fall as market gains: What you need to know

IIn the last trading session, CrowdStrike Holdings (CRWD) closed at $181.75, marking a -0.62% move from the previous day. That change lagged the S&P 500’s daily gain of 2.24%. Meanwhile, the Dow Jones gained 2.51% and the tech-heavy Nasdaq lost 0.2%.

Today, shares of the cloud-based security company have gained 14.44% over the past month. Meanwhile, the IT & Technology sector lost 3.39%, while the S&P 500 lost 2.58%.

CrowdStrike Holdings will look to show strength ahead of its next earnings release, which is expected on March 9, 2022. In this report, analysts expect CrowdStrike Holdings to post a profit of $0.20. per share. This would mark a year-over-year growth of 53.85%. Our most recent consensus estimate calls for quarterly revenue of $412.33 million, up 55.64% from the prior year period.

It’s also important to note recent changes to analyst estimates for CrowdStrike Holdings. These revisions help show the ever-changing nature of short-term trading trends. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.

Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 Zacks Consensus’ EPS estimate rose 5.57% over the past month. CrowdStrike Holdings is currently a Zacks Rank #2 (Buy).

In terms of valuation, CrowdStrike Holdings is currently trading at a Forward P/E ratio of 196.45. This valuation marks a premium to the sector’s average Forward P/E of 50.38.

Additionally, it is worth mentioning that CRWD has a PEG ratio of 7.86. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. The CRWD industry had an average PEG ratio of 2.86 at yesterday’s close.

The Internet – Software industry is part of the IT and technology sector. This industry currently has a Zacks Industry Rank of 173, which places it in the bottom 32% of all 250+ industries.

The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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