American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

CrowdStrike stock forecast: will it hit its ATH after earnings?

by admin November 22, 2024
November 22, 2024
CrowdStrike stock forecast: will it hit its ATH after earnings?

CrowdStrike stock price has bounced back and almost doubled in the past few months as the impact of its outage fade. CRWD shares jumped to $360 on Friday, its highest level since July 24. It has soared by 77% from its August low and is slowly matching towards its all-time high.

CrowdStrike stock price analysis

The weekly chart shows that the CRWD share price bottomed at $200 a few months ago as its outage triggered a major crisis globally, with Delta Air Lines losing over $500 million. The sell-off intensified after the Japanese yen carry trade unwinding in August.

Recently, however, the stock has bounced back and joined other American companies that have soared to their all-time highs.

On the weekly chart, the CrowdStrike stock price has rallied and crossed the important resistance level at $298, its highest swing in 2021 and the previous all-time high. This was a notable level since it was the upper side of the cup and handle pattern, a popular continuation sign.

Its August low was the lower side of the handle section. The stock has now remained above the 50-week and 25-week Exponential Moving Averages (EMA), a sign that investors are bullish on it. 

Also, the Relative Strength Index (RSI) and the MACD indicators have all pointed upwards, which is a sign of renewed momentum. The RSI is yet to get to the overbought level, while the Average Directional Index (ADX) is pointing downwards.

Therefore, the CrowdStrike share price has the momentum to potentially rise to its all-time high of near $400. However, there is also a risk of a reversal since it has formed what looks like a rising wedge, a popular reversal sign. If this reversal works out, the stock may drop and retest the key support at $200. 

Read more: Should you buy CrowdStrike stock under $275? Analysts predict major upside

CRWD earnings ahead

The next important catalyst for the CrowdStrike share price will be its earnings scheduled on Tuesday, November 26. 

These numbers will provide more color on the company’s growth as signs show that the cybersecurity industry is cooling. It is also now competing with Wiz, one of the fastest-growing companies in the world.

The most recent results showed that the company’s revenue jumped by 32% in the second quarter to $963 million. This growth happened as the number of companies using its products remained at an elevated level despite the outage. Its subscription revenue rose to $918 million, while the annual recurring revenue (ARR) rose by 32% to $3.86 billion. 

Analysts expect that CrowdStrike’s revenue will show that its business continued to do well in the third quarter. Revenue is expected to come in at $983 million, a 25% increase from the $786 million it made in the same period last year. 

For the year, analysts expect that its annual revenues will be $3.9 billion followed by $4.7 billion in the coming financial year. If these numbers are correct, they will signal that the company is still experiencing double-digit growth rates. 

The main concern for CrowdStrike and other companies in the cybersecurity industry is its hefty valuation, which stands at over $87 billion. These are huge numbers for a company whose revenue will likely hit $10 billion by 2030 if the current growth trajectory continues. 

That would signal a forward price-to-sales ratio of 8.7, which is higher than most companies. The concerns get more when you consider its earnings. In this case, it has a forward P/E ratio of 96, higher than the sector median of 24. In contrast, Nvidia, a more profitable company that has faster growth metrics, has a multiple of 49.

For a SaaS company, the best approach to value it is to look at its rule of 40, which looks at its growth and margins. It has a forward revenue growth of 28 and a net income margin of 4.8, giving it a value of almost 33, meaning that it is a highly overvalued company. 

The fact that CrowdStrike is overvalued is not a sign that you should sell it. Instead, the stock may continue doing well as long as it demonstrates strong revenue and profitable growth. 

The post CrowdStrike stock forecast: will it hit its ATH after earnings? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Bahamas’ $124 million debt swap: a turning tide for ocean health and climate?
next post
Analysis: as Adani battles charges and stocks remain volatile, this is what investors should know

Related Posts

AppLovin CEO explains why his proposal for TikTok...

April 7, 2025

ERN price soars 125% as Binance backs Ethernity...

February 28, 2025

If you invest $1,000 in Snap stock today,...

October 24, 2024

What’s fuelling the surge in China’s property stocks?

September 30, 2024

This Asian stock index outperforms India’s Nifty and...

December 25, 2024

Paramount merger sparks concern among movie theater owners

July 11, 2024

JPMorgan stock plummets 7.5% after president Pinto’s ‘Elon...

September 11, 2024

ESPN, Fox and Warner Bros. Discovery to launch...

February 7, 2024

What’s going on with Angel One stock?

October 15, 2024

Risk alert: ‘mild recession’ could crash the S&P...

April 27, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved