From Nasdaq: 2025-05-19 10:28:00

CrowdStrike (CRWD) has seen a 25.4% stock return in the past six months, outperforming the Zacks Security industry. The company’s subscription revenues crossed $1 billion in the fourth quarter of fiscal 2025, driven by AI integration and subscription models. However, ongoing regulatory scrutiny and customer sentiment pose challenges.

CrowdStrike faces competitive pressure from companies like Palo Alto Networks, SentinelOne, and Cisco in the cybersecurity space. These competitors offer similar products, potentially impacting CrowdStrike’s profitability. The Zacks Consensus Estimate for CrowdStrike’s fiscal 2026 earnings indicates a year-over-year decline of 12.5%, making the stock less attractive in the near term.

CrowdStrike is currently trading at a premium valuation compared to the Zacks Security industry. The company’s forward 12-month P/S ratio of 21.47X is significantly higher than the industry’s ratio of 14.20X. With a disappointing profit outlook for fiscal 2026 and rising costs, CrowdStrike is rated as a Zacks Rank #4 (Sell) stock.

Experts recommend selling CrowdStrike shares now due to the company’s challenging outlook. In a list of 7 elite stocks, CrowdStrike is deemed less attractive for early price pops. Investors are advised to focus on other opportunities given the current challenges facing CrowdStrike in the market.



Read more at Nasdaq: CRWD Rises 25% in 6 Months: Should You Buy, Sell or Hold the Stock?