CrowdStrike: Cybersecurity Stock Breaks Out to the Upside

Last Updated: 5. Dezember 2023By

In Germany, a wave of excitement is building up about the budget crisis, as if the country were bankrupt. Yet, in international comparison, Germany stands out with its debt ratio. A gigantic billion-dollar problem exists in entirely different areas – the increasing damage caused by cyberattacks. One of the beneficiaries of this megatrend is CrowdStrike. The American company specializes in cybersecurity, particularly the protection of computer endpoints from cyberattacks. It is regarded as a leader in this field and plays an important role in the detection and defense against cyberattacks.

CrowdStrike makes jump into the profit zone For the 3rd quarter, the company reported revenues of $786.01 million, compared to $580.88 million in the previous year. Net income was $26.67 million compared to a net loss of $54.96 million in the previous year.

Forecast for the 4th quarter is above expectations The company expects for the 4th quarter a profit of $0.81 to $0.82 per share on sales of $836.6 to $840 million. Analysts surveyed by Capital IQ expect $0.78 on sales of $836.8 million.

CrowdStrike opens new offices in Singapore With the new office in Singapore, the company opens up a central node. This expansion highlights the company’s continued commitment to the region and increases its capacity compared to its previous facilities in Singapore. The opening of the new office strengthens CrowdStrike’s already strong presence in Singapore and throughout Asia.

Limited stock potential after sensational stock performance Conclusion: As you can see from the chart above, the stock has run sensational this year. The expectations of analysts are also extremely positive. 44 of 49 analysts recommend buying and 5 are holding. The average analyst target price is $236 and offers you practically no potential. At the highest analyst target price of $275, you get 17%. Don’t forget: After jumping into the profit zone, CrowdStrike is valued based on the earnings estimate for the next year with a P/E of almost 80. That can’t really be called a bargain.