CrowdStrike (CRWD), Strength: Is It Possible to Jump 8.1%? into More Strength?

CrowdStrike’s shares surged in the past session, with more trading volumes than usual. Recent earnings estimates have been revised to reflect the latest trends…

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CrowdStrike Holdings CRWDShares ended last session 8.1% higher at $265.63 This was due to an extraordinary volume, with more shares being traded than average. This is compared to the stock’s 7.2% decline over the last four weeks.

After Nasdaq’s announcement late Monday night that cybersecurity company would be included on the Nasdaq-100 Equal Weighted Index as well as the Nasdaq-100 Technology Index, the upswing occurred just before August 26th market opening.

CrowdStrike’s growth has been phenomenal over the past year. This is due to an increasing demand for cybersecurity solutions in light of the increasing number of data breaches, and the growing necessity for networking products and security tools amid the COVID-19-led remote work trend. Organizations are focusing on digital transformation and cloud migration as key growth drivers.

CrowdStrike is able to leverage its portfolio strengths, particularly the Falcon platform’s 10 Cloud Modules, which helps increase its competitive advantage and adds users. Strategic acquisitions like Preempt and Humio are also expected to fuel growth.

The cloud-based security firm is forecast to report quarterly earnings at $0.09 per share. This represents an increase of +200% year-over-year. The revenue is expected to rise by 62.8% over the previous quarter and reach $323.97million.

Earnings growth and earnings expectations are critical in evaluating the strength of a stock. However, empirical research has shown a strong correlation between earnings revision trends and stock price movements in near-term.

CrowdStrike’s consensus EPS estimate has remained the same over the past 30 days. In the absence of any upward trend in earnings estimates revisions, a stock’s value doesn’t tend to move higher. Keep an eye out for CRWD in the future to determine if any recent gains can be converted into greater strength.

This stock is currently held at a Zacks rank 3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

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Publiated at Wed 25 August 2021, 07:14.03 +0000

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