Categories Analysis, Technology

CrowdStrike (CRWD) will remain a red-hot stock this year. Here’s why

CrowdStrike (NASDAQ: CRWD) has been on fire after reporting its maiden quarterly results as a public company last year. The cybersecurity technology firm recorded double-digit revenue growth in recent quarters even as its loss narrowed sharply, reflecting the steady subscription growth.

CrowdStrike got a boost last week after brokerage firm Nomura turned bullish on it and predicted ‘hyper-growth’ for this year. The analyst also reaffirmed the buy rating and $71 price target. A key point that needs to be noted is that the twelve-month price target, which is broadly in line with the consensus, represents a 27% upside.

CRWD Affordable

Currently trading far below its recent peak, CrowdStrike is an affordable stock with significant growth prospects. The company’s impressive performance should justify its relatively high valuation. This week’s rally indicates that the stock might have started moving towards the target. A clearer picture will emerge after a few weeks when the company unveils its fourth-quarter numbers. Until then, those interested in the stock cannot afford to ignore it.

Also see: Symantec Corporation: Q2 2020 Earnings Snapshot

Security is a rapidly evolving area of the information technology industry. In his most recent statement, CEO George Kurtz said CrowdStrike has the technology and capability to counter the most formidable security threat, such as the recent cyber attacks linked to the ongoing unrest in the Middle East. The subscription-based cloud service that offers highly flexible and easy-to-install platforms give the company an edge over the conventional security providers.

Loss Narrows

In the third quarter, the loss narrowed sharply to seven cents per share, aided by an 88% surge in revenues to $125 million. The company added a record 772 net subscribers during the quarter, taking the total number to 4,561. The management once again raised its full-year guidance, which underscores the immense growth potential of the cybersecurity market.

Strong Debut

The Sunnyvale, California-based tech firm had a blockbuster IPO mid-2019. After opening high, the stock closed the first day’s session up 70%. Founded in 2011, the company analyzes user behavior in network-linked devices and comes up with solutions to tackle malicious activities.

Also see: CrowdStrike Q3 2020 Earnings Conference Call Transcript

After withdrawing from the post-IPO boom in the second half of 2019, CrowdStrike shares stabilized towards the end of the year. The stock closed the last trading session higher and maintained the uptrend on Monday, gaining about 9% during the regular session.

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top