Should CRWD's Shares Be Purchased at $360?
In the tech-driven market of 2025, CrowdStrike's stock has been a rollercoaster ride, starting the year strong at below $350, peaking at over $450 in mid-February, and then turbulently plummeting to around $360 due to a combination of company-specific issues and unfavorable market sentiment.
Let's dive into the nitty-gritty details of CrowdStrike's performance:
Ups and Downs - The Journey of CRWD Stock
- After a powerful rally, the stock market god hit the pause button, initiating a downturn caused by several negative developments, such as investigations into a $32 million deal with Carahsoft Technology and disappointing forward guidance.
- Fret not, as CRWD stock's current state is still attractive but volatile, providing a tricky picking point for investors.
Valuation - CRWD vs. the S&P 500
The question on everyone's mind - how does CRWD's valuation measure up against the S&P 500? The answer lies in the price-to-sales (P/S) ratio:
- CrowdStrike's P/S ratio, which fluctuates around 19.2 to 23.21, significantly outshines the S&P 500's average, typically hovering between 2 to 3.
In summary, CRWD stock's valuation leans toward the high side compared to the S&P 500, displaying the expectation of strong growth in this thriving tech company.
The Performance Powerhouse - CrowdStrike's Growth, Profitability, and Financial Stability
Now, let's examine CrowdStrike's key performance indicators:
- Growth: CrowdStrike has a track record of remarkable revenue growth, averaging around 40% over the last three years, outperforming the S&P 500's lowly 6.3% increase.
- Profitability: Though CrowdStrike's profit margins are comparatively weaker than most companies in the Trefis coverage universe, it has a powerful Operating Cash Flow (OCF)-to-Sales Ratio of 35%.
- Financial Stability: CrowdStrike's balance sheet is extremely strong, showing a debt-to-equity ratio of 0.9% against the S&P 500's 19.0%. Cash makes up a whopping 49% of its total assets.
Weathering The Storm - Downturn Resilience
As winter turns to spring, storms may still lurk. CrowdStrike's resilience during downturns has been weaker than the benchmark S&P 500 index in the past, but we'll keep fingers crossed for a soft landing in the US economy. Our dashboard highlights the impact CRWD stock faced during the last six market crashes.
HQ Portfolio - Navigate the Volatility with Lower Risk
If the volatility of CRWD stock is unsettling, Trefis' High-Quality (HQ) Portfolio presents a compelling alternative. This portfolio, comprising 30 stocks, has outperformed the S&P 500, generating returns exceeding 91% since its inception, while aiming to provide a smoother, less roller-coaster ride for investors.
Invest wisely, friends. Happy investing!
- The SEC and DOJ investigations into a $32 million deal with Carahsoft Technology have contributed to CrowdStrike's (CRWD) stock volatility in 2025, causing a downturn and raising questions about the company's revenue and valuation.
- Despite the recent turbulence, CrowdStrike's valuation, as measured by the price-to-sales (P/S) ratio, remains higher than the S&P 500's average, indicating strong investor expectations for growth in the tech company.
- For those seeking a less volatile alternative to CrowdStrike (CRWD), the HQ Portfolio, a collection of 30 stocks that have outperformed the S&P 500, may offer a more smooth and stable investment experience.
