Few names gained more than CrowdStrike (NASDAQ:CRWD) stock over the summer months.
The company’s share price has risen 45% since mid-May when the hack on the Colonial Pipeline threatened America’s energy supply and drove home the growing importance of cybersecurity.
Now trading at $265 a share, and up 105% over the past 52-weeks, many shareholders and analysts are rightfully wondering if CRWD stock has any gas left in the tank or is due for a pullback this fall.
The good news for current shareholders and investors who have been circling CRWD stock is that the professional analysts on Wall Street forecast more growth ahead for the shares.
A Closer Look at CRWD Stock
The median price target on CrowdStrike stock is currently $313, suggesting that the share price could climb 15% higher from current levels over the next 12 months.
The continued optimism comes from the fact that CrowdStrike continues to innovate its cybersecurity offerings and take market share in an extremely competitive sector.
In its most recent quarterly results, CrowdStrike reported that its revenue grew 70% year-over-year to $337.7 million, beating analysts’ estimates by nearly $15 million.
Subscription revenue for its cybersecurity products climbed 71% higher and accounted for 94% of its top line revenue. The company’s net income grew an impressive 228% to $25.9 million, or $0.11 per share, also beating analysts’ forecasts.
CrowdStrike continues to lead on innovation in the cybersecurity space. Its cloud-based cybersecurity solutions are miles ahead of the older, primarily software-based cybersecurity products that are peddled by its competitors.
CrowdStrike employs artificial intelligence and behavioral techniques to achieve best-in-class threat detection, enabling its marquee “Falcon” platform to block even the most advanced cyberattacks and online threats.
NASDAQ Inclusion
Growth and innovative products have helped grow CRWD stock 313% since the company’s 2019 initial public offering (IPO).
Now, a catalyst for the latest rally in the share price has also been CrowdStrike’s upcoming inclusion in the technology-focused NASDAQ 100 stock index.
CrowdStrike stock will need to be bought by large institutional investors as well as mutual funds and exchange traded funds (ETFs) that track the index or seek to replicate its performance.
That means CrowdStrike stock will be more widely held than it is today over the coming months.
Additionally, CrowdStrike continues to grow its product offerings and remains on the bleeding edge of cybersecurity.
In the past two years, the company has grown the modules it offers clients to 19 from 10. CrowdStrike has also acquired identity provider Preempt Security and log management specialist Humio.
These strategic acquisitions have enabled CrowdStrike to improve its signature Falcon cybersecurity platform.
Earlier this year, CrowdStrike debuted “Falcon X Recon” to help clients monitor threats on the dark web, as well as “Falcon Horizon” that automates some parts of cloud security for corporations.
CrowdStrike currently sees its addressable market at $36 billion but forecasts that it could grow to as much as $106 billion by 2025, providing a big future opportunity for the fast-growing technology company.
Buy CRWD Stock for the Long-Term
There’s no question that CRWD stock has run far in a short period of time, but the company continues to demonstrate that it is nimble, innovative and fast-growing.
As such, Wall Street remains bullish on CrowdStrike’s future and sees the company’s share price continuing to appreciate over the next year.
With a potential 15% gain possible and plenty of momentum behind it, CrowdStrike’s shares are a definite buy. Investors can hold this stock in their portfolio and benefit from it over the long term.
Disclosure: On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
