Knowing facts before you bet on it

Crowdstrike Holdings (Crwd) was recently on the list of the most sought -after stocks from Zacks.com. Therefore, you may want to take some of the key factors into account that could influence the performance of the share in the near future.

Last month, the shares of this cloud -based security company returned +19% compared to the change of -4.3% of the Zacks S&P 500 Composite. During this time, the Zacks security industry, in which crowdstrike falls, has lost 0.9%. The key question now is: What could be the future direction of the stock?

Although media reports or rumors about a significant change in the business prospects of a company generally lead to the fact that its shares lead to trend and an immediate change in price, there are always certain basic factors that ultimately advance the purchase and hate decision.

Here at Zacks we prioritize the evaluation of the change in the projection of the future income of a company above all. This is because we believe that the current value of his future profit current determines the current value for its shares.

Our analysis essentially is based on how the analysts of sales pages that cover the shares revises their profit estimates in order to take into account the latest business trends. If the profit estimates for a company increase, the at the time to be accompanied by the current value for its shares. And if the at the time value of a share to be added is higher than the current market price, investors tend to buy the shares, which means that the price is upwards. For this reason, empirical studies indicate a strong correlation between trends in estimating the profits and the short -term share price movements.

Crowdstrike is expected to make a profit of $ 0.66 per share in the current quarter, which corresponds to a change of -29%compared to the previous year. In the last 30 days, the Zacks Consensus estimate has changed +2.9%.

For the current financial year, the consensus estimate of $ 3.44 refers to a change of -12.5% compared to the previous year. This estimate has changed +9.8%in the last 30 days.

For the next financial year, the consensus assessment of $ 4.55 shows a change of +32.2% compared to what crowdstrike is expected a year ago. In the past month, the estimate +1.2%changed.

Our proprietary stock assessment tool, The Zacks Rank, offers a strong externally tested track record and offers a more conclusive picture of the price direction of a share at short notice, as it effectively uses the power of profits. Due to the size of the recent change in the consensus estimate and three other factors in connection with profit estimates, crowdstrike with Zacks ranked # 4 (sale) is assessed.

The following table shows the development of the company's 12-month consensus EPS EPS estimate:

12-month consensus EPS estimate for CRWD _12Monthepscharturl

Although the profit growth of a company is probably the best indicator of its financial health, not much happens if it cannot increase its income. It is almost impossible for a company to increase its income without increasing its sales over long periods of time. It is therefore crucial to know the potential sales growth of a company.

In the case of crowdstrike, the consensus sales of $ 1.1 billion shows a change of +19.9%compared to the previous year for the current quarter. The estimates of 4.78 billion US dollars and 5.76 billion US dollars for the current and next financial years show changes of +21% and +20.5%.

Crowdstrike reported sales of $ 1.06 billion in the last quarter, which corresponds to a change of +25.2%compared to the previous year. EPS of USD 1.03 for the same period is $ 0.95 a year ago.

Compared to the Zacks Consensus estimate of 1.03 billion US dollars, the registered income is a surprise of +2.4%. The EPS surprise was +21.18%.

The company defeated consensus -epseps estimates in each of the following four quarters. The company exceeded consensus sales every time.

Without taking into account the assessment of a share, no investment decision can be efficient. When predicting the future price performance of a share, it is crucial to determine whether the current price correctly reflects the internal value of the underlying business and the company's growth prospects.

The comparison of the current value of the valuation multipliers of a company, such as

The Zacks Value Style Score (part of the Zacks Style Scores Systems), which pays attention to the grade of stocks from A to F both traditional and unconventional valuation metrics (AA is better than a C; and so on) is rather helpful to identify whether a share is overrated, legally valued or temporarily accommodated.

Crowdstrike is evaluated on this front to F, which indicates that it deals with his colleagues with a bonus. Click here to display the values of some evaluation metrics that have driven this grade.

The facts discussed here and a lot of other information about Zacks.com could help determine whether it is worth paying attention to the crowdstrike market or not. However, his Zack's rank # 4 suggests that it affects the wider market below average at short notice.

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This article was originally published in Zack's Investment Research (Zacks.com).

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