Should You Buy Shares of CrowdStrike Under $150?

With businesses being forced to go online and operate over cloud computing, as a result of the pandemic, corporations are placing an emphasis on cybersecurity and cloud protection. CrowdStrike (CRWD) rose to the occasion by…

providing cloud-delivered endpoint protection. Leveraging artificial intelligence (AI), the CrowdStrike Falcon platform protects customers against cyberattacks on endpoints on or off the network by offering visibility and protection across the enterprise.

CrowdStrike (CRWD) is one of the best performing cybersecurity stocks of 2020, with a powerful business model generating record revenue. In the second quarter that ended in July, top-line was up 84% year-over-year to $199 million, and annual recurring revenue (ARR) increased 87% year-over-year to $790.6 million. The company reported a loss of $0.14 per share, significantly improving from the year-ago loss of $0.4 per share.

With the robust growth in its operating results, the stock has gained 175.4% year-to-date. This impressive performance and a potential upside based on a number of factors, has helped it earn a “Buy” rating in our proprietary ratings system.

Here is how our proprietary POWR Ratings system evaluates CRWD:

Trade Grade: A

CRWD is currently trading higher than its 50-day and 200-day moving averages of $119.11 and $82.76, respectively, indicating that the stock is in an uptrend. In fact, the stock’s 37% return over the past three months reflects this solid short-term bullishness.

CRWD added 969 net new subscription customers in the last reported quarter to take the total to 7,230 subscription customers. This represents 91% year-over-year growth. CRWD’s subscription customers that have adopted four or more cloud modules increased to 57%, and those with five or more cloud modules increased to 39%, compared to the year-ago quarter. Moreover, the company was identified as the fastest-growing endpoint security software vendor in the IDC Worldwide Endpoint Security Software Market Shares 2019 report.

Buy & Hold Grade: B

In terms of proximity to its 52-week high, which is a key factor that our Buy & Hold Grade takes into account, CRWD is fairly positioned. The stock is…

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