CrowdStrike Holdings (CRWD.US on xStation5) has performed extraordinary since last year's all-time lows of $ 31.85, at the start of the coronavirus pandemic. The cybersecurity stock reached a historic milestone in mid-February 2021 at $ 250 per share, obtaining a performance up to 700%.
The company has had a price performance similar to the behavior of other technology sectors within the Nasdaq's index and coinciding with this, since the last ATH it went down due to inflation fears and a rebound in the yields of United States bonds . We will know its FY earnings on March 16th.
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Create account Try a demo Download mobile app Download mobile appIn the fundamental aspect, CrowdStrike has maintained a year-on-year growth of sales above 80% from every single quarter to quarter results and the estimates for the FY next 16th, could reach the figure of $ 860M, improving the figure of $ 481M of 2019 and the $ 249.8M from the previous fiscal year and the first one for which we can reach data.
In addition, when it comes to profits, the company would be able to reduce its losses by 60% from the -0.96 $ per share to the -0.32 $ per share estimated for the annual release. Although it is true that this year it has increased its debt to finance its expansion, one of the characteristics of this type of growth company is the financial leverage that is sustained and although we cannot parameterize its P/E ratio as it continues to generate losses, its price-to-sales ratio remains above x35.7 but with a very volatile quarterly variation.
Regarding working capital, in previous quarters it has remained at 100%, the last known, pending the annual publication, being 130%.
Closely tied to recent investor sentiment, its behavior will continue to be tied to recent events and with a “beta” close to 1 relative to the US100 index, fundamentals could take a back seat.
At a technical level we have a drawdown correction of 33% from the ATH. Its bullish guideline from the historical lows remains valid while the key support recently broken at $ 195 per share will be the reference for the bullish continuity of the stock.
Source: xStation5
