Today's stock to watch would be CrowdStrike Holdings ( $CrowdStrike Holdings, Inc.(CRWD)$ ). After CrowdStrike reported earnings that were below analysts estimates and weak guidance for the following quarter, the stock gapped down lower but has since parred those losses to close 14.7% lower and formed a bullish green ice cream bar.
Although still in a downtrend channel for now, there is a potential short term trade to take, potential price target of $145 (resistance) and setting a stop loss of slightly under $105.
From Morningstar's analysis, they have placeda fair value of $156 per share, representing a 20% discount. CrowdStrike is a leader in endpoint security, however elevated macroeconomic conditions are likely to continue to weigh down on this stock for the next few quarters.
Their recent third-quarter revenue clocked in at $581 million, up 53% YoY, while ARR (annual recurring revenue) grew 54% YoY to $2.34 billion. However mrt new ARR, a measure of the company's ability to land new customers grew at a smaller 17% YoY and declined 9% sequentially. Management attributed this weak growth to elongating sales growth cycles as customers sought to push deals forward amid a tricky macro environment. Earnings per share came in at $0.40 per share, above management's guidance.
Outlook for fourth quarter includes revenue of$619.1 million to $628.2 million and adjusted earnings of $0.42 to $0.45 per share. For fiscal2023, the company is targeting $2,223 millionto $2,232 million and adjusted earnings of $1.49 to $1.52 per share.
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