Bill Cara

A “must-consider” growth stock brought to me by a “must-have” data service

I have recently become acquainted with MarketBeat, a market data service that for years I had rejected as one of the most over-marketed “research” services. But I decided to try a $1 trial for a month. Then I bought the low-level subscription service, and then I decided to buy the high-level “All-In” service. I am now enamored with MarketBeat and am using it every day as much as StockCharts.com (EXTRA) and FinViz.com (Free).

MarketBeat offers a Daily Newsletter, which I have never had the time to read, but today, with nothing much happening in Natural Resources, I did. Time well spent. Today, for example, I discovered a growth stock to add to my 400-stock watchlist for broad market trading.

Here is the MarketBeat write-up that caught my attention:

Crowdstrike Holdings (NASDAQ: CRWD)

Whenever you have multiple bullish catalysts working in a company’s favor, it can really pay off to take notice. That’s the case with Crowdstrike Holdings, which is a cybersecurity technology company offering cloud workload and endpoint security, threat intelligence, and cyberattack response services. This growth stock continues to benefit from high-profile cybersecurity compromises, with the most recent headline involving the U.S. State Department sustaining a cyber incident. These types of headlines directly highlight the importance of companies like Crowdstrike, and it’s hard to not be bullish on the cybersecurity industry going forward. It’s also important to note that as more companies move their businesses into the cloud, the demand for Crowdstrike’s software should increase in tandem.

Additionally, news broke this week that Crowdstrike stock is being added to the Nasdaq 100 Index which helped the stock rally over 8%. This is another catalyst that could send the stock to new highs in the coming weeks, as some studies show when a company is added to a popular index it can lead to increased investor demand and elevated stock valuations. Finally, the company will report its Q2 earnings on August 31st which could help the stock start September off on a positive note. Crowdstrike’s strong Q1 results included revenue growth of 70% year-over-year and customer growth of 82% to 11,420 as of the end of the quarter and could be a sign of good things to come in the upcoming Q2 report.

So I looked at the Analyst Ratings, which impressed me:

CROWDSTRIKE (NASDAQ:CRWD) PRICE TARGET AND CONSENSUS RATING

27 Wall Street analysts have issued ratings and price targets for CrowdStrike in the last 12 months. Their average twelve-month price target is $259.77, predicting that the stock has a possible downside of 3.47%. The high price target for CRWD is $305.00 and the low price target for CRWD is $200.00. There are currently 2 hold ratings and 25 buy ratings for the stock, resulting in a consensus rating of “Buy.”

So, the analysts feel the market is presently over-valuing this company, but the point is that they all like the company. So, I checked out Earnings:

CROWDSTRIKE (NASDAQ:CRWD) EARNINGS INFORMATION

CrowdStrike last posted its quarterly earnings data on June 2nd, 2021. The reported $0.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.04. The firm earned $302.80 million during the quarter, compared to analyst estimates of $291.77 million. Its revenue was up 70.0% on a year-over-year basis. CrowdStrike has generated ($0.40) earnings per share over the last year (($0.72) diluted earnings per share). Earnings for CrowdStrike are expected to grow in the coming year, from ($0.50) to $0.18 per share. CrowdStrike has confirmed that its next quarterly earnings report will be published on Tuesday, August 31st, 2021. CrowdStrike will be holding an earnings conference call on Tuesday, August 31st at 5:00 PM Eastern. Interested parties can register for or listen to the call using this link or dial in at 404-537-3406 with passcode “9695498”.

There is so much info here and it’s all well organized under the following tabs:

PROFILE

ANALYST RATINGS

CHART

COMPETITORS

EARNINGS

INSIDER TRADES

INSTITUTIONAL OWNERSHIP

HEADLINES

PRICE HISTORY

SHORT INTEREST

SOCIAL MEDIA

And in the case of CrowdStrike, I did go through all of them and then made the decision to add CRWD to my 400-stock watchlist for possible investment in the future when the stock comes into the Accumulation Zone.

In summary, I now find MarketBeat an inexpensive must-have data service that will enable subscribers to quickly discover “must-consider” stocks for their watchlist, and the latest data will always be there when you check weeks or months later. And when important data changes, their system generates timely “alerts”.

What’s not to like.