BUZZ-CrowdStrike sparks rally across cybersecurity stocks after upbeat forecast
CRWD•Valuation and analyst expectations
The stock was recently trading at 132 times expected earnings, versus its five-year average forward price-to-earnings ratio of 111, according to LSEG data, suggesting the stock might be overvalued.
The average rating of 55 analysts covering the stock is "buy," and their median price target is $235, LSEG-compiled data showed.
The stock has surged about 90% year to date, outperforming the 13.7% rise in the Nasdaq .IXIC.
CrowdStrike jumps after upbeat forecast
Shares of cybersecurity firm CrowdStrike CRWD.O jumped 17% to $221.53, putting the stock on track for its best day since late March 2020.
The rally spilled over to the broader cybersecurity sector, with shares of Palo Alto PANW.O, Fortinet FTNT.O, Zscaler ZS.O, SentinelOne S.N, SailPoint SAIL.O and Rapid7 RPD.O rising between 6% and 14%.
Results beat estimates and outlook rises
CrowdStrike beat second-quarter revenue and profit estimates and raised its annual revenue forecast, citing strong cybersecurity demand.
The company posted second-quarter revenue of $1.47 billion, beating estimates of $1.44 billion, according to LSEG data.
