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CrowdStrike Stock Shows Bullish Trend and Positive Market Sentiment

StockInvest.us, 8 months ago

CrowdStrike Fundamental Analysis

CrowdStrike Holdings, Inc. (Ticker: CRWD), operates on the NASDAQ exchange and ranks as a market leader within the IT security industry. As of October 11, 2023, CrowdStrike's closing price was $188.22, experiencing a 2.38% increase ($4.37). The stock's highest price over the past year reached $188.66, marking its peak performance. This symbolizes a significant rise from the annual low of $92.25.

Despite the negative earnings per share (EPS) of -$0.44, implying a loss, investors are evidently optimistic about the company's potential. This is reflected in the stock's high price-to-earnings (PE) ratio of -427.77, indicating that investors are willing to pay a high price for the stock, even though the company is currently not profitable.

Regarding CrowdStrike's performance in relation to its industry, a news snippet on October 10, 2023, highlighted that its performance has surpassed other players in the Computer and Technology sector. Also, another news article published the same day suggested CrowdStrike shows promising potential, suggesting the market sentiment towards the stock is generally favorable.

As the earnings announcement is set for November 27, 2023, an investor should watch for any potential changes in company performance or strategic direction that could drive the stock's price.

Technical Analysis

The technical indicators suggest that CrowdStrike's stock is currently in a bullish market. The stock's latest Relative Strength Index (RSI) of 78 strongly indicates overbought conditions, which could eventually lead to a minor price correction in the short term. However, the Moving Average Convergence Divergence (MACD) of 0.64 in the past three months supports the bullish trend's continuation.

CrowdStrike The 50-day and 200-day Moving Average, $159.65 and $137.12 respectively, both fall below the last closing price. This generally suggests a positive trend over both mid and long-term periods.

Meanwhile, the stock's resistance level remains undetermined, thus providing the stock with potential room for additional gains. Though the immediate support level and the stop-loss stand at $181.82 and $182.69, respectively.

Performance Projection

Given the provided data, let's attempt predicting CRWD stock performance:

For October 12, 2023, considering the strong bullish tendency, the positive news reports, the possible price correction due to overbought RSI and the support level, the stock price is expected to linger around the last closing price of $188.22.

As for the upcoming week, maintaining the underlying momentum, the stock price might push closer to the target median of $195, considering the average true range (ATR) which stands at 3.15, and depending on the market conditions and potential new influencing factors.

Final Evaluation

Based on the analysis, the recommendation for CrowdStrike Holdings, Inc. stock is a "BUY". The consensus amongst analysts suggests a strong "Buy", with 30% recommending a "Buy" and none recommending a "Sell". Despite the EPS being in negative territory, the technical parameters strongly indicate an ongoing positive trend. Furthermore, recent news is predominantly positive, alluding to optimistic market sentiment. However, investors should remain cautious of the high RSI, indicating that the stock may be overbought and may undergo a slight correction. Thus, ongoing vigilance of market trends, future company performance, and macroeconomic factors is essential.

Check full CrowdStrike forecast and analysis here.