PreMarket Prep Stock Of The Day: Crowdstrike

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

For those who don't have the time to tune in live or listen to the podcast, Benzinga will highlight one stock that merits further discussion. This analysis is not a buy or sell recommendation.

PreMarket Prep typically focuses on earnings, rating changes and other company-specific and macroeconomic news. With these times being anything but normal, our primary — only — topic has been COVID-19: not only its impact on the markets, but its human toll as well.

As we head into the weekend and try to get our lives back to normal, my editor suggested I do the same with this article. Let's tackle a normal topic: Crowdstrike Holdings Inc CRWD is trading higher after its fourth-quarter report.

Crowdstrike Posts Q4 Beat, Raised Guidance 

After the close Thursday, the cybersecurity company announced 6-cent fourth-quarter EPS beat and a sales beat of $14.26 million.

Crowdstrike issued first-quarter EPS and sales estimates above the Street's expectations It should be noted that the young company, which went public last June, has exceeded estimates for EPS and sales every time its initial report. 

Long-Term Crowdstrike Price Action

On its inaugural day of trading, June 12, 2019, the issue bottomed at $56 and ended that session at $58. By Aug. 29, the algorithmic and momentum buyers took the issue to $101.88 and it posted its all-time closing high the day prior at $99.39.

As investors began to abandon the issue, it cascaded lower and reached $44.80 Nov. 8 and managed to rebound to $67.58 Feb. 19. Just as the bottom fell out of market, so did the share price of the issue. It did not bottom until March 17 at $31.95, but managed to rebound to end the session at $38.41.

Recent Crowdstrike Price Action

In the two sessions ahead of the fourth-quarter, Crowdstrike managed to reach $44.49 on Thursday, but fell back to end the session at $41.74.

After a much higher open Friday, it rallied to $50.88 and reversed course. That marks the highest level for the issue since it peaked on March 6 at $54.87. The stock was trading 16.08% higher at $48.45 at the time of publication. 

Crowdstrike Moving Forward

In this market environment, it's difficult to be extremely bullish on any issue. Yet with Crowdstrike being in the cybersecurity sector, if world tensions escalate, this issue and others in the sector may be ones that prosper.