CrowdStrike (CRWD) is an early stage growth stocks that look promising now, suggests Tyler Laundon, small cap expert and editor of Cabot Early Opportunities.
The stock looks good, especially given a huge quarter that was reported in March. The back story is that CrowdStrike is an $11.9 billion market cap company that provides cloud-based cybersecurity and endpoint protection solutions.
Its platform currently deploys up to 10 modules through the cloud that secure and protect client endpoints, including laptops, desktops and IoT devices. With all the people working from home there is high demand for this type of protection.
The company was born in the cloud, so is 100% developed for this delivery model. CrowdStrike has a very efficient platform that offers both immense power and tremendous flexibility. That adds up to a good value proposition for customers in a large and growing addressable market.
The best evidence of customer demand is growth. CrowdStrike has 5,431 customers (up 116% over a year ago) and is rapidly expanding sales with existing customers (net expansion rate was 124% in Q4).
Big picture, this is one of the fastest growing cybersecurity companies out there and is becoming a heavy hitter in the endpoint security market. Revenue was up 93% to $481.4 million in fiscal 2020, and guidance suggests that will grow roughly 50% this year.
Given the environment out there one would think management is being conservative with that guidance. Interested investors should be on the lookout to buy this one on dips and average into a position to hold for several years.
