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S&P 500   3,633.20 (+1.55%)
DOW   30,066.92 (+1.61%)
QQQ   293.72 (+1.15%)
AAPL   114.91 (+0.93%)
MSFT   213.49 (+1.61%)
FB   274.29 (+2.18%)
GOOGL   1,754.99 (+1.59%)
AMZN   3,128.71 (+0.98%)
TSLA   547.77 (+4.97%)
NVDA   518.97 (-1.26%)
BABA   276.94 (+2.53%)
CGC   26.87 (+8.70%)
GE   10.54 (+4.67%)
MU   62.94 (-1.93%)
AMD   84.56 (-0.88%)
T   29.28 (+2.31%)
NIO   53.08 (-4.15%)
F   9.43 (+6.43%)
ACB   9.09 (+26.60%)
NFLX   480.66 (+0.85%)
GILD   60.85 (+1.60%)
BA   220.51 (+4.25%)
DIS   151.69 (+3.91%)
S&P 500   3,633.20 (+1.55%)
DOW   30,066.92 (+1.61%)
QQQ   293.72 (+1.15%)
AAPL   114.91 (+0.93%)
MSFT   213.49 (+1.61%)
FB   274.29 (+2.18%)
GOOGL   1,754.99 (+1.59%)
AMZN   3,128.71 (+0.98%)
TSLA   547.77 (+4.97%)
NVDA   518.97 (-1.26%)
BABA   276.94 (+2.53%)
CGC   26.87 (+8.70%)
GE   10.54 (+4.67%)
MU   62.94 (-1.93%)
AMD   84.56 (-0.88%)
T   29.28 (+2.31%)
NIO   53.08 (-4.15%)
F   9.43 (+6.43%)
ACB   9.09 (+26.60%)
NFLX   480.66 (+0.85%)
GILD   60.85 (+1.60%)
BA   220.51 (+4.25%)
DIS   151.69 (+3.91%)
S&P 500   3,633.20 (+1.55%)
DOW   30,066.92 (+1.61%)
QQQ   293.72 (+1.15%)
AAPL   114.91 (+0.93%)
MSFT   213.49 (+1.61%)
FB   274.29 (+2.18%)
GOOGL   1,754.99 (+1.59%)
AMZN   3,128.71 (+0.98%)
TSLA   547.77 (+4.97%)
NVDA   518.97 (-1.26%)
BABA   276.94 (+2.53%)
CGC   26.87 (+8.70%)
GE   10.54 (+4.67%)
MU   62.94 (-1.93%)
AMD   84.56 (-0.88%)
T   29.28 (+2.31%)
NIO   53.08 (-4.15%)
F   9.43 (+6.43%)
ACB   9.09 (+26.60%)
NFLX   480.66 (+0.85%)
GILD   60.85 (+1.60%)
BA   220.51 (+4.25%)
DIS   151.69 (+3.91%)
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Crowdstrike (NASDAQ:CRWD) Stock: Securing the Cloud and Growing Your Portfolio

Saturday, June 27, 2020 | Sean Sechler
Crowdstrike (NASDAQ:CRWD) Stock: Securing the Cloud and Growing Your Portfolio

All it takes is one successful cyberattack to cause significant damage to a company’s reputation for protecting its customer and its internal data. In today’s increasingly technology-dominated world, the ability to provide reliable cybersecurity services is becoming an essential service. This is one of the big reasons why Crowdstrike Holdings Inc (NASDAQ:CRWD) stock has been so hot and is trading near all-time highs.

Cloud computing is a rapidly growing market that investors clearly view as having huge potential. Thanks to that trend, finding a way to protect all of the data that is being uploaded into the cloud has become a major need for enterprises around the world. Crowdstrike offers endpoint security which protects every device that has access to a network. It’s compelling Falcon Platform is garnering a lot of positive buzz and the stock is worth a look for any growth portfolio. Here are some great reasons to put Crowdstrike on your watch list.

Innovative Protection

Most antivirus software solutions are designed to react to attacks after they happen. That’s why Crowdstrike is so innovative. By using cutting-edge technology such as artificial intelligence and machine learning, Crowdstrike’s platform is designed to predict cyber attacks and stop them in their tracks. With more and more enterprises transferring their data and operations into the cloud, this company is gaining more traction every day. Just think about all of the devices that are vulnerable to cyber threats. Laptops, desktops, IoT devices, servers, and virtual machines can all expose a company to digital attacks. Crowdstrike’s platform protects them all.

With a unique product that is disrupting the cybersecurity industry and making competing products like Norton Antivirus obsolete, Crowdstrike’s stock is soaring. The company is partnered up with some massive names including Amazon Inc’s Amazon Web Services, which led the company to a 75% quarterly increase in ARR (annual recurring revenue) just from that contract alone. It’s clear that this technology is useful, in demand, and changing the cybersecurity industry, which is why it’s a great company to add for the long-term.

Earnings Beat on Strong Growth

One of the big catalysts for Crowdstrike’s recent rally has to do with its resoundingly positive Q1 earnings report in which it reported its first quarterly profit ever. The company delivered 88% ARR growth and 105% subscription customer growth year over year as it helped more and more companies manage their cybersecurity in a rapidly changing tech-centric business world. The great thing about recurring revenue is that it makes it easier to predict a company’s future performance both operationally and financially.

The revenue for Crowdstrike in Q1 totaled $178.1 million, which was a year-over-year increase of 85%. It’s hard to say whether or not the revenue growth will continue at this pace, but it was without a doubt a very strong quarter for the company. What’s great about how Crowdstrike’s business model works is that they offer their clients upgrades and add-on modules to increase the annual income from each paid subscriber. Around 55% of Crowdstrike’s customers have purchased four or more modules. This cross-selling strategy bodes well for the company’s future, especially as businesses start to understand just how vulnerable they are when migrating their workloads into the cloud.

Current Trend is Crowdstrike’s Friend

It’s hard to deny the positive momentum that this stock has working in its favor. Businesses are quickly moving to the cloud to achieve better economies of scale and to allow their employees the ability to stay productive while working from home. This trend was already occurring prior to the pandemic and has accelerated even more in recent months. It’s safe to say that the company’s management is confident that this momentum will continue and upped its full-year guidance by 7%.

You can’t deny the technical momentum with Crowdstrike stock either, as the stock has risen from lows of $31.95 in March up 220% to touch all-time highs. The stock has been seeing massive accumulation after its earnings report, which likely means that institutional investors are scooping up shares. The fact that Crowdstrike has both technical and macro trends working in its favor make it absolutely worth a look for your portfolio.

Room to Run

We have seen some truly epic moves lately in the technology sector, and you can count Crowdstrike as one of the most impressive. If you are looking for a company that is poised to deliver strong growth in the next 3-5 years with room to run, Crowdstrike stock should definitely be on your shopping list. Just keep in mind that the NASDAQ and tech stocks are probably due for a significant pullback in the coming weeks, which might provide the perfect opportunity to pick up some shares on a dip.

Companies Mentioned in This Article

CompanyBeat the Market™ RankCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
CrowdStrike (CRWD)1.3$147.61+0.0%N/A-273.35Buy$135.70
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The Next 5 Retailers on the Edge of Bankruptcy

Through no fault of theirs, the novel coronavirus has put some retailers on the edge of bankruptcy. And as you’ve seen, many have fallen over that edge including iconic names like Nieman Marcus, J.C. Penney and J.Crew.

In fact, according to the American Bankruptcy Institute, there were 560 commercial Chapter 11 filings in April. That was a 26% increase over last year. And executive director, Amy Quakenboss, suggests that there are more to come.

“As financial challenges continue to escalate amid this crisis,” observes Quakenboss, “bankruptcy is sure to offer a financial safe harbor from the economic storm.”

With no revenue walking through the door, many retailers are seeing a semblance of revenue from e-commerce sales. But for some retailers, the shutdown is more impactful because they didn’t have a strong e-commerce structure. That means that they rely more than others on brick-and-mortar sales.

The real question now is will there really be the pent-up demand that some analysts still swear is just waiting to be unleashed. It may indeed exist. Time will tell. But time is not a commodity many of these retailers have. And we’ve identified five retailers for which the clock is not in their favor.

View the "The Next 5 Retailers on the Edge of Bankruptcy".

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