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CrowdStrike Holdings (CRWD) Stock Drops Despite Market Gains: Important Facts to Note

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CrowdStrike Holdings (CRWD - Free Report) closed at $186.78 in the latest trading session, marking a -0.78% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.18%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.3%.

The the stock of cloud-based security company has risen by 6.54% in the past month, leading the Computer and Technology sector's gain of 3.65% and the S&P 500's gain of 3.08%.

Investors will be eagerly watching for the performance of CrowdStrike Holdings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 28, 2023. The company is forecasted to report an EPS of $0.74, showcasing an 85% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $777.1 million, indicating a 33.78% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $2.82 per share and a revenue of $3.04 billion, demonstrating changes of +83.12% and +35.56%, respectively, from the preceding year.

Any recent changes to analyst estimates for CrowdStrike Holdings should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CrowdStrike Holdings presently features a Zacks Rank of #3 (Hold).

In terms of valuation, CrowdStrike Holdings is currently trading at a Forward P/E ratio of 66.71. For comparison, its industry has an average Forward P/E of 35.01, which means CrowdStrike Holdings is trading at a premium to the group.

It's also important to note that CRWD currently trades at a PEG ratio of 1.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.55 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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