It’s time to deploy capital into a stock that we think is about to ride another fast-money wave higher — cybersecurity firm CrowdStrike Holdings, Inc. (CRWD), asserts Mark Skousen in the specialty trading service, Fast Money Alert.
CrowdStrike provides cloud-delivered software solutions for endpoint and cloud workload protection primarily in the United States. However, it also sells its products in Australia, Germany, India, Israel, Romania and the United Kingdom.
Its subscription-based Falcon platform covers various security markets, including corporate workload security, security and vulnerability management, managed security services, information technology (IT) operations management, threat intelligence services, identity protection and login management.
As you likely know, recent high-profile cyber hacks and ransomware attacks have put the spotlight on the need for companies, governments, schools and just about every firm that has a computer network to make sure that the network in question is protected from hackers. Protecting networks is precisely what CrowdStrike does best.
In June, CrowdStrike reported first-quarter earnings and revenue that easily bested estimates, with adjusted earnings per share (EPS) of $0.10 vs. the estimated $0.06. That EPS growth represents a 400% jump in EPS percentage change vs. the same quarter a year ago. As for revenue, that was up 70% year over year to $302.8 million vs. estimates for just $291.4 million.
The fast money has loved CRWD over the past year, with a jump in shares of 121%. Yet, the real move higher has come over the past three months, with the shares up 29% over that time.
Now, however, CRWD appears to be building a technical base at around the $260 level. That’s near its high, but the way we see it, this is the next level of consolidation before the shares make another big run higher.
So, to take advantage of what we think will be another big move in the red-hot cybersecurity sector, we recommend you buy CrowdStrike Holdings at market, with a protective stop at $209.00. Make your move into CrowdStrike, and let’s get ready to shoot up even bigger fast-money profits.