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Is it time for investors to watch CrowdStrike shares?

It seems that every time you read the news these days, another cyber attack has taken place. 

This article was originally written by MyWallSt. Read more market-beating insights from the MyWallSt team here.

With EA becoming the latest victim of this modern threat, investors have got an eye on one solution in particular. 

 

Is CrowdStrike a market leader?

Cyberattacks are on the rise. Last month’s Colonial Pipeline attack was followed by another on the U.S. branch of the world’s largest meat-packing company, JBS — who paid the $11 million ransom — the Irish public health service, and gaming giant EA. 

It was the latter, which was confirmed last week, that appears to be the catalyst behind renewed investor interest in cybersecurity stocks.

Luckily for CrowdStrike, it’s got three brand new ransomware protection products to combat the epidemic of cyberattacks — putting it front and center for investors. 

What makes it stand out amid so much cyber-strife though? Well, it is being specifically picked out by analysts as the top play in the industry. Following an impressive Q1 earnings report a couple of weeks back, CrowdStrike highlighted its growth momentum with a 400% EPS increase year-over-year and a 70% jump in revenue. 

Even the retail investors on Reddit are showing increasing interest in the stock, although not in the form of a short-squeeze, thankfully, as CRWD has a reasonably low short interest ratio of roughly 6%. 

So, despite the obvious concern of cyberattacks to the rest of us, it’s a blessing to CrowdStrike which is suddenly the belle of the Wall Street ball. As global cybersecurity spend speeds towards $250 billion annually, CRWS is poised to become a market leader. 

 

MyWallSt gives you access to over 100 market-beating stock picks and the research to back them up. Our analyst team posts daily insights, subscriber-only podcasts, and the headlines that move the market. Start your free trial now!

 

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

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