Why CrowdStrike Holdings Inc's Stock Skyrocketed 47% in a Quarter

CrowdStrike Holdings Inc (CRWD, Financial) has experienced a remarkable surge in its stock price, with a 1.61% gain over the past week and an impressive 47.43% gain over the past three months. The company's market capitalization now stands at $53.54 billion, with the current stock price at $224.23. According to GuruFocus's valuation metrics, CrowdStrike is significantly undervalued, with a GF Value of $381.3, down slightly from the past GF Value of $383.07. This indicates that the stock may still have room to grow, as it remains below its intrinsic value as defined by GuruFocus.com.

Introduction to CrowdStrike Holdings Inc

CrowdStrike Holdings Inc (CRWD, Financial) operates within the software industry, specializing in cloud-based cybersecurity. The company's flagship Falcon platform provides comprehensive threat detection and response capabilities for enterprise IT infrastructures. Founded in 2011 and headquartered in Texas, CrowdStrike went public in 2019 and has since become a key player in the cybersecurity space. 1729882835537424384.png

Assessing CrowdStrike's Profitability

CrowdStrike's Profitability Rank is currently at 4/10, which reflects its challenges in achieving profitability. The company's Operating Margin stands at -5.78%, which is better than 34.74% of companies in the industry. Its ROE is -6.28%, surpassing 36.46% of its peers, while the ROA is -1.92%, outperforming 43.03% of competitors. The ROIC of -6.64% is also better than 34.92% of the industry. These figures suggest that while CrowdStrike is not currently profitable, it is performing relatively well compared to a significant portion of its competitors.

Exploring CrowdStrike's Growth Potential

CrowdStrike's Growth Rank is an impressive 9/10, indicating strong growth prospects. The company's 3-Year Revenue Growth Rate per Share is 43.50%, which is higher than 90.77% of the industry. Its 5-Year Revenue Growth Rate per Share is an even more remarkable 66.20%, surpassing 98.04% of its peers. The estimated Total Revenue Growth Rate for the next 3 to 5 years is 29.88%, which is better than 95.04% of the industry. Additionally, the 3-Year EPS without NRI Growth Rate is 6.30%, and the EPS Growth Rate for the next 3 to 5 years is projected at 32.69%. These growth metrics suggest that CrowdStrike has a robust trajectory for future expansion.

Notable Shareholders in CrowdStrike

Prominent investors have taken notice of CrowdStrike's potential. Jim Simons (Trades, Portfolio) holds 1,668,083 shares, representing a 0.7% stake in the company. The Harbor Capital Appreciation Fund (Trades, Portfolio) owns 1,227,471 shares, accounting for 0.51% of the company, while Chase Coleman (Trades, Portfolio) holds 900,000 shares, equating to a 0.38% share. These significant investments by well-known investors underscore the confidence in CrowdStrike's market position and growth prospects.

Competitive Landscape

When compared to its competitors, CrowdStrike stands out with a market capitalization of $53.54 billion. Fortinet Inc (FTNT, Financial) has a market cap of $40.98 billion, Palantir Technologies Inc (PLTR, Financial) is valued at $43.56 billion, and Splunk Inc (SPLK, Financial) has a market cap of $24.5 billion. CrowdStrike's higher market capitalization suggests a stronger market position relative to these competitors.

Conclusion

In summary, CrowdStrike Holdings Inc's stock performance has been stellar, with a significant undervaluation according to GF Value. The company's strong market position and innovative business model in the cybersecurity industry, combined with its impressive growth metrics, make it an attractive option for investors. Despite its current lack of profitability, the company's growth potential and the confidence shown by significant shareholders indicate a promising future. When compared to its competitors, CrowdStrike's higher market capitalization further solidifies its standing as a leader in the cybersecurity space.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

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