Bull Of The Day: CrowdStrike

CrowdStrike (CRWD - Free Report) is the $11 billion cyber-security darling of 2019 that IPO'd around $60 last June, ran to $100 in August and then just built a base around $45-50 in Q4.

And that was part of the reason I pounced on shares under $50 on December 30 once the selling appeared to be over.

In fact, the sellers may regret what they just did last month. Here's what I told my TAZR Trader group in the recent Buy Alert...

TAZR Traders: Portfolio is buying CrowdStrike (CRWD - Free Report) between $48 and $50.

CrowdStrike has a powerful AI/machine learning (ML) approach to 24/7 malware threats that can no longer be recognized with traditional "signature-based" metrics (past threat patterns).

CRWD became a Zacks #2 Rank after beating expectations and providing solid guidance in its Q3 report on Dec 5.

But the stock sold off afterwards, with particularly heavy volume on Dec 9 -- exactly 180 days after its IPO on June 12.

And that means it was IPO investors who were "locked-up" and just wanted out after missing their chance to sell at $100. Shares dropped from that peak during the Ukraine news.

The bad news is that just about any selling was justified in the second half based valuation alone as the stock still trades at 20X forward sales with a $10 billion market cap.

The good news is that the insider selling hardly put a dent in the potential turn that is setting up. In fact, shares couldn't even touch the Oct-Nov double bottom at $45 and there has been a good amount of volume this month showing willing buyers taking shares from shaky insider hands.

Now that they are out of the way, let's see what the growth and upside are for CRWD.

(end of excerpt from TAZR Buy Alert on Jan 30)

I went on in that report to describe the analysts who were turning bullish again, despite the valuation.

Silencing the Haters

Stifel Nicolaus raised their price target on CRWD shares to $90 after going over the company's Q3 beats in core SaaS metrics...

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Kevin Cook is a Senior Stock Strategist for Zacks Investment Research where he runs the TAZR Trader and more

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David A Romero 1 month ago Member's comment

Close your eye and buy theses stocks today-wll-crc-10% jump by EOD 30% drop in last 3 days US China deal will be signed on Jan 15.