Please ensure Javascript is enabled for purposes of website accessibility

Why CrowdStrike Holdings Stock Climbed 12.9% in July

By Keith Noonan – Updated Aug 9, 2020 at 10:29AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cybersecurity specialist has been one of the year's hottest large-cap tech stocks.

What happened

Shares of CrowdStrike (CRWD -0.43%) gained 12.9% in July, according to data from S&P Global Market Intelligence. The company's stock gained ground in conjunction with momentum for the broader market and favorable coverage from analysts. 

^SPX Chart

^SPX data by YCharts

Image source: YCharts.

The market posted a month of strong gains in July, with the S&P 500 index closing out the month in positive territory on the year for the first time since March's coronavirus-driven market crash. CrowdStrike stock has benefited from the market's recovery and strong demand for its endpoint cybersecurity services, and the company's share price has more than doubled in 2020. 

A lock icon and a person using a laptop.

Image source: Getty Images.

So what

Citi analyst Walter Pritchard published a note on Crowdstrike stock on July 9, upgrading his rating on the stock from "sell" to "neutral." The note cited evidence of market share gains in the endpoint cybersecurity market as a core reason for the upgrade and also increased Citi's one-year price target on the stock from $74 per share to $116.

CrowdStrike got another boost from favorable analyst coverage courtesy of Jefferies analyst Brent Thill in a note published on July 28. Thill's note maintained a "hold" rating on the stock, but raised the one-year price target on the stock at Jefferies from $100 to $115 per share.

Now what

CrowdStrike stock has slumped early in August's trading. The company's share price is down roughly 10% in the month so far, and has lost ground despite a solid rally for the broader market. The exact reasons for the decline are unclear, but many growth-dependent cloud software and cybersecurity companies saw significant sell-offs in the trading period spanning from Aug. 5 through Aug. 7. 

CRWD Chart

CRWD data by YCharts

Image source: YCharts.

CrowdStrike is set to publish second quarter earnings results after the market closes on Sept. 2. The company is guiding for second quarter revenue to come in between $185.8 million and $190.3 million. Management expects to post earnings performance between break-even quarter and a non-GAAP (adjusted) loss of $0.02 per share. 

For the full-year period, the cybersecurity specialist is guiding for sales between $761.2 million and $772.6 million and an adjusted loss per share between $0.05 and $0.08. 

CrowdStrike has a market capitalization of roughly $22 billion and is valued at approximately 28.5 times this year's expected sales. 

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CrowdStrike Holdings, Inc. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

CrowdStrike Holdings, Inc. Stock Quote
CrowdStrike Holdings, Inc.
$139.45 (-0.43%) $0.60

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.