CrowdStrike Holdings (NASDAQ: $CRWD) is a leading cybersecurity company that provides software solutions to companies and individuals to help them detect and prevent cyber-attacks.
In a major display of confidence, CRWD stock soared to a new all-time of $406.99 on Tuesday, January 28, 2025. As of 2:37 PM EST, the stock is at $406.46, an 8.57% increase from Monday’s closing price. It has a market capitalization of $99.95 billion, with a volume of 3,812,798 shares. Let us break down why CRWD is soaring.
CrowdStrike Stock Rallies To New ATH
The cybersecurity giant has seen its stock rise to new highs as investors rally behind promising growth prospects. Over the past year, the stock is up 39.77%, while over the past six months, it has experienced growth of 58.41%.
CRWD stock has outperformed the market, when compared to the S&P 500, which is up 10.92% in the past six months, and up 23.88% in the past year. The stock has also outperformed the Technology sector overall, which is up 36.39% in the past year, and up 19.26% in the past six months.
Drivers Of CrowdStrike’s Performance
There are several drivers of growth for the stock include:
Strong Earnings Expectations
CrowdStrike (CRWD) is set to report its fourth quarter fiscal 2025 results on March 4, 2025, and there are huge expectations. Analysts forecast an EPS of $0.55 for fiscal 2025, a 10% improvement from last year. They forecast revenue of $1.03 billion for Q4, which signals strength amidst a competitive landscape.
Sustained Revenue Growth
CrowdStrike has sustained revenue growth in recent quarters. For instance, in the Q3 fiscal 2025 results, the company reported a 28.5% YoY rise in revenue to $1.01 billion, beating estimates by 3%. That has helped to bolster confidence in its long-term growth.
Leading Market Position
CrowdStrike Falcon platform has continued to experience growth in its customer base. Its focus on cloud-based solutions compares favorably to similar solutions from Fortinet and Palo Alto Networks. The rising demand for cybersecurity solutions further strengthens its market standing.
Positive Analysts’ Rating
Analysts rate CRWD stock favorably, with an average strong buy rating. Based on the ratings of 33 analysts, 29 give it a buy rating, with 3 giving it a hold rating. There are no analysts that rate CROWD stock as a sell. The largely bullish sentiment by analysts has encouraged retail traders to add CRWD to their portfolios.
Rising Cybersecurity Awareness
There is growing awareness of cybersecurity threats and their potential impact on business processes. As such, companies are taking proactive measures to protect their systems. This trend augurs well for CrowdStrike’s solutions and bolsters confidence in long-term growth.
Is CrowdStrike A Good Investment?
Looking ahead, analysts are confident about CrowdStrike’s growth prospects. For instance, Finbox analysts forecast revenue to grow at a compound annual growth rate (CAGR) of 25.1%, placing it in the 88.7% percentile of the Technology sector.
While investors should remain vigilant of any potential risks, such as guidance adjustments in the upcoming earnings call, the fundamentals and strong market position present an attractive opportunity. Consequently, adding CRWD stock to your portfolio could potentially pay off in the medium term.
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