Stocks to Benefit from a Tech Rally: CrowdStrike
NVIDIA's strong Q3 report and upbeat guidance that was released on November 21 shore up investors' confidence in other companies of the segment, related to artificial intelligence, big data, chip and cloud technologies. CrowdStrike Holdings Inc, headquartered in Austin, Texas, could be included in a broader range of well-established business projects. A 12-year-old provider of cloud protection across endpoints and workloads offers managed security and vulnerability control services, identity and log protection, selling corporate and individual subscriptions to its Falcon platform and modules through its sales team and a global network of channel partners. With its nearly $50 billion of market caps CrowdStrike is an important player of the IT industry.
The nearest quarterly report from CrowdStrike is expected on November 28. Its share prices climbed from $149 in late August to $209, a record 40% increase this autumn and more than 95% performance year-to-date. However, there is still space for an upside considering performance of some other technology companies over the same period, as well as a 30% discount vs the company's own record two years ago, when CrowdStrike has been traded just a dollar and a half below $300 per share. Therefore, it has a further significant growth potential.
Continuation of a powerful rally looks as the major scenario for the stock, when the world's economy faces digital transformation. Many companies, as well as governments, are ready for extended cyber spending. CrowdStrike's strong fundamentals in top and bottom lines, most probably, would find more confirmations of their high altitude, yet some part of market optimists may provide additional rise of the stock even before the quarterly report on expectations, based on positive results for other IT companies. Consensus calls for Q3 EPS (earnings per share) of $0.74, which would be 85% better than $0.40 in Q3 2022, against $0.17 two years ago. Average sales' forecast is +34.8% YoY at $777.33 million. CrowdStrike has topped Wall Street’s consensus in every quarter since it went public in June 2019.
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