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CrowdStrike Holdings CRWD shares rallied 9.4% in the last trading session to close at $408.68. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7% gain over the past four weeks.
The upswing can be seen as the reflection of broader market recovery following DeepSeek's new AI model-led dramatic sell-offs in the tech sector on Monday. Additionally, the company’s announcement of achieving a perfect score on an industry test for ransomware detection, protection, and accuracy could have also boosted investors’ confidence.
This cloud-based security company is expected to post quarterly earnings of $0.85 per share in its upcoming report, which represents a year-over-year change of -10.5%. Revenues are expected to be $1.03 billion, up 22.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For CrowdStrike, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CRWD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
CrowdStrike belongs to the Zacks Internet - Software industry. Another stock from the same industry, Consensus Cloud Solutions, Inc. CCSI, closed the last trading session 12.1% higher at $30.20. Over the past month, CCSI has returned 13.5%.
Consensus Cloud Solutions' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.19. Compared to the company's year-ago EPS, this represents a change of +7.2%. Consensus Cloud Solutions currently boasts a Zacks Rank of #3 (Hold).
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CrowdStrike (CRWD) : Free Stock Analysis Report
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