Based in Texas, CrowdStrike (NASDAQ:CRWD) delivers software-as-a-service based, security endpoint solutions with artificial intelligence functionalities. A while back, I predicted that CrowdStrike stock would get to $300. Now, I’m looking forward to higher prices and you can still get on board for outsized returns in the second half 2024.

Here’s a fun fact for you. Believe it or not, CrowdStrike shares gained 24% in June and even outperformed Nvidia (NASDAQ:NVDA) stock, which rose 13%. Clearly, CrowdStrike’s loyal shareholders are on a winning streak — and the rally doesn’t have to end in July, even if one Wall Street expert isn’t joining the bull party. 

CrowdStrike Stock Doesn’t Look Cheap

I’ll be the first to admit that CrowdStrike doesn’t appear undervalued if we use the company’s price-to-earnings ratio as a gauge. Notably, CrowdStrike’s GAAP-measured trailing 12-month P/E ratio is 729.9x.

I won’t attempt to defend that number, but I will defend CrowdStrike’s value as a company. First of all, CrowdStrike just joined the prestigious S&P 500 index, so the company will be included in a variety of index-tracking funds.

CrowdStrike recently surpassed $1 billion in sales with just one partnership. Specifically, CrowdStrike works with information technology specialist CDW (NASDAQ:CDW) to provide AI-enhanced cybersecurity solutions worldwide.

Additionally, CrowdStrike is teaming up with distributors in Latin America to commercialize the company’s Falcon cybersecurity platform “across Mexico, Brazil and the broader Latin America market.”

CrowdStrike observed a rise in e-crime in Latin America, so the company has an opportunity to prevent this type of crime and generate robust revenue in the region.

CrowdStrike Gets a Downgrade

There are other reasons to remain optimistic about CrowdStrike’s growth prospects. For example, the company’s first quarter fiscal 2025 revenue increased 33% year over year to $921 million. Moreover, CrowdStrike improved from a GAAP-measured earnings loss of $19.5 million in the year-earlier quarter to income of $6.9 million in Q1 of FY2025.

Nevertheless, some Wall Street experts might not be willing to look beyond CrowdStrike’s valuation multiple. With that in mind, Piper Sandler analysts led by Rob Owens recently downgraded CrowdStrike stock.

“As shares have deservedly risen to the highest revenue multiple of any public software company above $75B in market cap and encroached on our $400 target (which we do not see a near-term catalyst for raising), we are lowering our rating to Neutral,” he said.

I totally get where Owens is coming from, but I also expect the stock to keep moving higher. CrowdStrike’s revenue growth and Latin American revenue-generation opportunities are impossible to overlook.

Plus, S&P 500 inclusion means that plenty of index-fund holders will indirectly invest in CrowdStrike. 

Besides, the Piper Sandler analysts admitted that they’re “excited” about CrowdStrike’s next act. They see “many incremental growth opportunities” for CrowdStrike, and I see them too. And that, more than any valuation metric, is the best way to gauge CrowdStrike’s ongoing value proposition. 

CrowdStrike Stock Will Rise Despite Valuation Concerns

CrowdStrike’s P/E ratio may be off-putting to some investors. Yet, I would discourage anyone from short-selling shares of CrowdStrike. Betting against CrowdStrike will probably get you clobbered in 2024’s second half.

Frankly, it doesn’t matter whether CrowdStrike stock “encroached on” Owens’s $400 price target. The stock will continue to rise as long as investors continue to envision continued growth for CrowdStrike.

So, don’t let the worry warts distract and dissuade you. Feel free to add some CrowdStrike shares to your portfolio, and get ready for $450 in the near term and much higher prices down the line.

On the date of publication, David Moadel 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.