CRWD is down nearly 20% in 2022
CrowdStrike Holdings Inc (NASDAQ:CRWD) is a cybersecurity technology company that provides cloud-delivered protection of endpoints, cloud workloads, identity, data, as well as cyberattack response services. The cybersecurity company is scheduled to host its 2022 Annual Meeting of Stockholders next week on Wednesday, June 29.
Despite its 19.6% year-to-date deficit, CRWD has added 10.7% in the past month, with help from a bounce off the $150 level. The security has been struggling to topple its 40-day moving average since late April, however, and its looking to sink even deeper below this trendline during Wednesday's session.
Analysts have remained extremely optimistic, despite this lukewarm trading action. All 20 in coverage consider CRWD a "buy" or better. Plus, the 12-month consensus price target of $240.63 is a hefty $240.63 premium to Tuesday's close.
From a valuation point of view, CrowdStrike stock trades at a premium. CRWD’s valuation metrics are incredibly high at a forward price-earnings ratio of 136.99 and a price-sales ratio of 22.03, despite the stock’s bearish form this past year.
Still, the cybersecurity concern's fundamentals suggest CrowdStrike stock merits that premium price. CRWD has managed to grow its annual revenues a jaw-dropping 555% since fiscal 2019, with the company reporting a 66% increase for fiscal 2022. The cybersecurity name is also estimated to see 51.9% revenue growth and 79.1% earnings growth for fiscal 2023, as well as a 36.3% increase in revenues and a 45.8% increase in earnings for fiscal 2024. CRWD holds a strong balance sheet with $2.15 billion in cash and $772.05 million, making the security an attractive play for growth investors.