Here is the breakdown on another high flyer of the COVID-19 pandemic. Read below for the breakdown on $CRWD otherwise known as Crowdstrike.
Current Price: $108.15
52/Wk High: $118.58
52/Wk Low: $31.95
Read below for the breakdown!
Crowdstrike is a major cloud company in which provides a series of endpoint security solutions through the cloud. The company’s main focuses are within antivirus protection, EDR solutions, and much more.
Crowdstrikes core platform called Falcon collects data in realtime and protects systems from viruses, therefore being deemed an anti-virus cloud software.
Throughout COVID-19 the cloud stocks and companies have been growing at an extremely fast rate. While the stock has run an already huge amount this year the outlook is terrific and the stock could be a solid buy.
According to Motley Fool $CRWD’s net margin through its subscription services came in at 77% (Up 5% YOY) throughout Q1.
Even better the company added a solid amount of customers throughout Q1. When last reported $CRWD added 830 new customers to its subscription services creating a total of 6,221 customers according to fool.com.
Even better the Q1 earnings were stellar and the company did much better than expected. $CRWD reported a beat with an EPS of $0.02 versus the expected $-0.06 EPS consensus. Secondly, revenue was strong coming in at $178 million.
Not only were earnings great but the balance sheet was as well. When last reported cash and equivalents was $265 million.
On another note, the company does not have any debt on the balance sheet and is clearly sitting on plenty of capital to sustain the future.
Moving onto the outlook the company was extremely bullish about Q2 during the Q1 report. When last reported $CRWD management is expecting big numbers for Q2 2021.
Currently, management expects Q2 2021 revenue to come in at $185.8 million to $190.3 million. Not only that but management also believes $CRWD will now do $761.2 million to $772.6 million for the full year 2021.
Digging into the technicals the charts may be flashing opportunity. Currently, the 6 month RSI sits at 55.02 which is a moderate buy location simply based on RSI. Furthermore, the 6-month MACD currently sits at roughly .27 and is starting to build upward momentum.
Finally, the technicals also show that it trades roughly 10 points under its 52/Wk high and the CCI is at an attractive 23.53 on the 6-month chart.
Given all the positivity analysts are also very bullish on $CRWD. Currently, the average price target is $113.86/share which presents a minimal 5.28% upside. Secondly, the high price target is $125.00/share and the low is $80.00/share.
Based on the high and low price targets there is both a solid upside and a large downside possibility. Given the targets, the high profit is 15.58% and possible loss is -26.03%.
Not only are the analysts bullish but the big money is as well. Currently, 87.90% of $CRWD is owned by institutions. Top holders include Allianz Global Investors, BlackRock Institutional Trust, and Capital Research Global Investors.
In short, $CRWD is attractive in the current environment. While the stock has run a solid amount I believe in the mid to long term the stock has much more upside. I believe a respectable mid-term price target is $115.00/share.
As a reminder, $CRWD’s earnings will be on 9/2/2020 which could push the stock into a pre-earnings run like many other popular stocks of late.
Overall I will be looking to raise cash and possibly enter $CRWD in the coming days.
EAT - SLEEP - PROFIT
Disclaimer: This is not direct financial advice, simply opinion based on independent research.