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CrowdStrike Holdings, Inc. (CRWD) Shows Bullish Trend with Strong Growth Potential

StockInvest.us, 2 weeks ago

CrowdStrike Technical Analysis

CrowdStrike Holdings, Inc. (CRWD) closed at $349.12 on June 7, 2024, marking a 2.53% increase from its previous close. The stock traded within a range of $337.13 to $349.91, hovering just below its resistance level at $349.32. The Relative Strength Index (RSI14) stands at 51, indicating a neutral position where the stock is neither overbought nor oversold.

Technical indicators reveal a bullish trend: The 50-day moving average is $317.48, and the 200-day moving average is $258.09, both of which are significantly below the current trading price. The Moving Average Convergence Divergence (MACD) for the past three months is a strong positive at 13.05, reinforcing the bullish sentiment.

The Average True Range (ATR) of 4.15 suggests moderate volatility. The current short-term stop-loss is at $336.97, with key support at $342.18 and immediate resistance at $349.32. Given the recent surge in volume to 4.31 million—well above the average of 3.02 million—there is notable buying interest, which could lead to further upward movement.

Fundamental Analysis

CrowdStrike has exhibited impressive revenue growth, outperforming many of its competitors in fiscal Q1. This is reflected in its recent market activity and favorable news coverage. With a year high of $365 and currently approaching this mark, investor sentiment is evidently positive.

The company has maintained a high Price-to-Earnings (PE) ratio of 646.52, which might seem inflated but is somewhat justified by its strong EPS of 0.54 and the advanced growth prospects associated with its cybersecurity offerings. The discounted cash flow (DCF) valuation is $353.05, indicating that the stock is fairly valued at its current price level.

CrowdStrike Analyst ratings are overwhelmingly positive with 1 strong buy, 33 buys, and 1 hold, none advising sell. The consensus target price is $310.87 but given recent momentum and earnings beat, short-term targets like the median of $325 could be conservative.

Long-term investment potential is robust due to the consistent profitability and expanded customer base with 65% subscribing to multiple security suites. The inclusion of CrowdStrike in the S&P 500 is also a significant milestone that typically leads to increased institutional investment.

Short-Term Predictions

For the next trading day, June 10, 2024, CRWD could trade higher as the positive news and increased volume point towards sustained bullish momentum. For the upcoming week, if it breaks the resistance at $349.32, it may test and possibly exceed the year high of $365.

Intrinsic Value and Long-term Potential

The intrinsic value analyses, including the DCF valuation, suggest that CRWD is priced close to its fair value. Combined with the growth in customer base, strategic expansion, and strong financial results, CRWD shows strong long-term potential. The bullish sentiment around the cybersecurity sector and AI integration further bolster its prospects.

Overall Evaluation

Categorizing CRWD as a 'Buy' candidate is warranted based on the technical strength, fundamental robustness, and positive sentiment. The stock’s recent performance, supported by impressive earnings and strategic positioning within a booming sector, aligns with strong future growth expectations. displays significant promise in both the short and long term, making it an attractive option within the cybersecurity industry.

Check full CrowdStrike forecast and analysis here.