3 Reasons CrowdStrike Stock Can Breakout to New Highs

CRWD stock hovers near its highs as growth remains strong…

This story was originally published here.

Even before the novel coronavirus came through, CrowdStrike (NASDAQ:CRWD) was already under significant pressure. CRWD stock hit its 2020 high on Feb. 19 just like the S&P 500. However, shares were still down more than 33% from its 52-week high at that point.

While shares were then crushed lower amid the coronavirus selloff, we’ve seen a robust rebound in CrowdStrike.

Shares have not only recouped all of the losses from the February high, but have actually made new all-time highs earlier this month. Let’s look at three reasons bulls can continue to bet on CRWD stock.

Coronavirus as a Catalyst

What propelled CRWD stock to new highs earlier this month? It was the company’s better-than-expected earnings results. Of course, it helped that the overall market has been in a strong uptrend too.

CrowdStrike earned 2 cents per share in the quarter, 8 cents better than expected as analysts were looking for a loss in the quarter. Revenue of $178.1 million grew more than 85% year-over-year and beat expectations by $12.7 million.

Here’s the kicker. CrowdStrike didn’t just deliver a beat-and-beat, it raised its guidance as well. In short, the company is seeing increasing demand for its cybersecurity products as Covid-19 forces more work-from-home and online work scenarios. From management’s release (bold emphasis added):

CrowdStrike finished the quarter with strong momentum and delivered results that exceeded our expectations across the board … Cybersecurity is mission critical and in the quarter our customers continued to prioritize their cybersecurity investments. With both security administrators and end-users working from home, we believe the rapid shift to a remote workforce has helped increase our leadership.

At a time where most companies are starving for growth or saw a large decrease in revenue and cash flow, CrowdStrike is seeing an inflow of business…

Editor's Note: Click here to keep reading.

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