Stock Analysis & Ideas

CrowdStrike Stock: What Lies Ahead, Post Q4 Beat?

CrowdStrike Holdings (CRWD) is a cybersecurity firm based in the United States. The firm offers cloud-based systems to safeguard sensitive endpoints and prevent breaches, among other security services.

Cyberattacks have become an increasingly common technique of causing harm to the network infrastructures as the digital transition proceeds. As a result, the majority of companies are flocking to the cybersecurity platform, and demand for cybersecurity solutions is on the rise.

Although CrowdStrike’s stock has fallen 7% over the past year, the company’s stock has gained 12.5% post its Q4 earnings announcement.

Strong Q4 Results & Impressive Guidance

The business posted revenues of $431 million, which increased 63% year-over-year and was higher than the Street’s expectation of $410.89 million, thanks to the expansion of its cloud and identity protection services. In addition, earnings of $0.30 per share came in above consensus expectations of $0.20 and spiked 130.8% from the year-ago quarter.

CrowdStrike also benefits from its annual recurring revenue (ARR), which is a fairly stable element of the company. ARR increased by 65% year-over-year to $1.7 billion. During the quarter, the firm added 1,638 net new subscription clients, up 65% from the year-ago quarter.

The cherry on top was that the company provided a positive outlook for the first quarter. The company predicts sales of $458.9 million to $465.4, which is higher than the $440.8 million average forecast. Furthermore, earnings of $0.22 to $0.24 per share are forecast, which is much higher than the $0.17 average estimated.

CrowdStrike appears to be in a great position to profit from the expanding use of cybersecurity solutions.

What’s Ahead?

The majority of analysts were impressed by CrowdStrike’s solid revenues, outstanding execution, and solid ARR growth in the fourth quarter.

One analyst Gregg Moskowitz of Mizuho Securities writes, “We believe CRWD’s cloud platform remains highly differentiated, and we continue to believe that strong ongoing execution can propel the shares much higher over time.”

He maintained a Buy rating on CRWD stock and a price target of $270.

Also, the stock has generated a lot of excitement among investors. Investors holding portfolios on TipRanks maintain a very positive outlook on CRWD stock. According to the statistics, 4.4% of these investors have boosted their CRWD stock holdings in the last 30 days.

Wall Street’s Take

On TipRanks, CrowdStrike stock commands a Strong Buy consensus rating based on 22 Buys and 1 Sell. As for price targets, the average CRWD stock price forecast of $264 implies almost 38.2% upside potential from current levels.

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