CrowdStrike Holdings is the IBD Stock of the Day as the cybersecurity stock becomes actionable coming off a rebound from its 10-week moving average. CRWD stock has gained 47% in 2023 amid a tech sector rally driven by artificial intelligence, where the company is about to make a move.
On the stock market today, CrowdStrike stock rose 2.2% to close at 152.73. During Monday trades, CRWD stock rose above last week's high of 153.93, which marks the new entry point, but retreated by session's end.
Worries over Microsoft's expanding line of cybersecurity products recently pressured some stocks in that sector, including CrowdStrike.
With the brief pullback, CRWD stock is currently actionable with its bounce off the 10-week line. CrowdStrike is among AI stocks and cybersecurity stocks to watch. Further, the Computer-Security group ranks No. 31 out of 197 groups IBD tracks.
CrowdStrike Expands Security Platform Into AI
Since its founding, Sunnyvale, Calif.-based CrowdStrike has used artificial intelligence and a specialized database to detect malware. CrowdStrike utilizes a patented "Threat Graph" database to analyze and correlate security events collected from customers in real time.
Amid the emergence of "generative AI," CrowdStrike plans to incorporate the technology into its cybersecurity platform. The company plans to officially unveil "Charlotte AI" in September at its Fal.Con customer conference.
Cybersecurity firms have used AI's pattern recognition capabilities for real-time analysis of data for a decade. Since the emergence of OpenAI's ChatGPT in November, how to deal with cybercrime has taken on more urgency. Both hackers and cybersecurity firms will leverage new generative AI tools, CRWD stock analysts say.
In addition, CrowdStrike is building a broad, threat-detection cybersecurity platform. It's called XDR, or extended detection and response. It monitors endpoints as well as web/email gateways, web application firewalls and cloud business workloads.
"The real winners in the AI race will be the companies with scale and proprietary data sets," Evercore ISI analyst Peter Levine said in a recent note to clients." We firmly believe that CRWD is well-positioned to capitalize on this advantage, thanks to its scale and reach across the entire security stack. Platform vendors gain an advantage through vast repositories and the capacity to accumulate substantial amounts of cyber threat intelligence."
AI Part Of Company's History
Founded by two former McAfee executives in 2011, the initial public offering for CRWD stock in June 2019 raised $659 million.
Also, CrowdStrike monitors laptops, mobile phones and other devices that access corporate networks.
CrowdStrike has expanded into protecting business applications that run on public cloud computing platforms.
Microsoft is the leading provider of endpoint services that monitor laptops, mobile phones and other devices that access corporate networks. But CrowdStrike has been gaining share from weaker players in the market.
Some analysts expect upside from a marketing partnership with Dell Technologies.
"CrowdStrike is well positioned to be a consolidator of security as the leading independent endpoint/XDR vendor with a dominant share of endpoint, outside of Microsoft and a broad platform," KeyBanc Capital Markets analyst Eric Heath said in a note to clients.
CrowdStrike Stock Technical Ratings
Meanwhile, CrowdStrike stock earns a Composite Rating of 94 out of a best-possible 99. Its earnings score, the EPS Rating, is 79. Also, it holds a Relative Strength Rating of 75.
CRWD stock has an Accumulation/Distribution Rating of B-minus. That analyzes price and volume changes in a stock over the past 13 weeks of trading. The B- rating indicates more funds are buying than selling.
In addition, the A/D Rating, on an A+ to E scale, measures institutional buying and selling in a stock. Further, A+ signifies heavy institutional buying; E means heavy selling. Think of the C grade as neutral.
Editor's Note: An earlier version of this story incorrectly stated the EPS rating on CrowdStrike.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
