CrowdStrike Holdings Surges Amid Strong Earnings and Stock Performance
Austin, Texas-based CrowdStrike Holdings, Inc. (CRWD) is a prominent player in the cybersecurity market. The company offers a comprehensive, cloud-based platform that protects endpoints, cloud workloads, identity, and data. With a market capitalization of $78.4 billion, CrowdStrike has established itself as a leader in next-gen endpoint security, threat intelligence, and responses to cyber-attacks.
Impressive Stock Performance-Outpacing the Market
Over the past year, CrowdStrike has significantly outperformed the wider market. CRWD stock has increased 25.3% year-to-date (YTD) and 71.3% in the last 52 weeks, surpassing the S&P 500 Index’s YTD gain of 24.3% and 35.8% return over the past year. Furthermore, when compared to the iShares Cybersecurity and Tech ETF (IHAK), which rose 12.1% in 2024 and 35% over the past year, CrowdStrike remains in a leading position.
Strong Q2 Earnings Report
After releasing its Q2 earnings on August 28, CrowdStrike’s stock climbed 2.8%. The company reported robust growth in subscriptions and strong demand for its cybersecurity solutions. Total revenues soared 31.7% year-over-year, amounting to $963.9 million. As of July 31, its Annual Recurring Revenue (ARR) also showed impressive growth, increasing by approximately 32% year-over-year to $3.9 billion. Of this, $217.6 million was net new ARR added during the quarter. Adjusted earnings per share (EPS) increased by 40.5% year-over-year, reaching $1.04, exceeding analysts’ expectations. However, the firm did lower its full-year guidance due to incentives offered in response to a significant outage on July 19.
Outlook and Analyst Ratings
For the current fiscal year, which concludes in January 2025, analysts predict a modest 4% growth in EPS, estimating it will reach $0.52. CrowdStrike’s earnings history has been mixed; it has beaten Wall Street’s projections in three of the last four quarters but fell short on one occasion.
Currently, CRWD carries a consensus “Strong Buy” rating. Among the 43 analysts monitoring the stock, 34 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and six propose a “Hold” rating.
In a recent assessment on November 4, JMP Securities analyst Trevor Walsh reiterated a “Market Outperform” rating for CRWD, setting a price target of $400.
The average price target from analysts stands at $325.54, reflecting a modest 1.7% increase from current price levels. The highest target on record is $424, indicating a potential upside of 32.5%.
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On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
