CrowdStrike Rallies 27% YTD: Should You Buy the Stock or Book Profit?

CrowdStrike Holdings, Inc. CRWD has been on an unstoppable run in 2025, rising 27.5% year to date, well ahead of the Zacks Internet – Software industry’s 19.8% gain. The stock has outperformed major cybersecurity players, including Fortinet, Inc. FTNT, Palo Alto Networks, Inc. PANW and Cisco Systems, Inc. CSCO, solidifying its dominance in the sector.YTD Price Return PerformanceImage Source: Zacks Investment ResearchThis rally marks a full-circle recovery from the July 19, 2024, global IT outage, which triggered a steep sell-off, pushing CrowdStrike to a 52-week low of $200.81 on Aug. 5 — a 41.5% drop from its pre-outage close of $343.05. Since Aug. 5, the stock has rebounded 116.4%, proving investor confidence in its long-term potential.Now, the question arises: Can CRWD sustain this momentum? The answer is yes. With robust financial performance, continued innovation and market leadership, CrowdStrike remains a compelling investment option right now.CrowdStrike’s Resilient Financial PerformanceCrowdStrike’s third-quarter fiscal 2025 results shattered expectations, highlighting its ability to bounce back stronger. Revenues rose 29% year over year to $1.01 billion, exceeding analyst estimates by 2.8%. Non-GAAP earnings per share (EPS) of 93 cents beat expectations by 14.8%, growing 13.4% from the year-ago quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Annual recurring revenues (ARR) jumped 27% year over year to $4.02 billion, reaffirming sustained demand for CrowdStrike’s cybersecurity solutions despite extended sales cycles following the July IT outage. More importantly, analysts remain bullish, as depicted by the Zacks Consensus Estimate for fiscal 2026, which indicates revenues and EPS will grow 20.2% and 16.6%, respectively, underscoring continued momentum.With a long-term expected EPS growth of 34.5%, far outpacing the industry average of 22.5%, CrowdStrike’s financial trajectory remains compelling. Moreover, the company has exceeded earnings estimates for four consecutive quarters, delivering an average surprise of 10.3%, proving consistent execution.CrowdStrike Price, Consensus and EPS Surprise CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike QuoteRelentless Innovation Keeps CrowdStrike Ahead of CompetitorsCrowdStrike’s success is rooted in continuous innovation, particularly in the wake of the July 2024 incident, which prompted the company to enhance its Falcon platform with advanced automated recovery techniques. These updates bolstered visibility, quality assurance and overall security, reassuring customers and strengthening trust in its solutions.The Falcon platform now boasts more than 28 modules, spanning endpoint security, identity protection and next-gen SIEM, allowing CrowdStrike to diversify its revenue streams. The company’s Cloud Security, Identity Protection and LogScale SIEM businesses have already exceeded $1 billion in ARR, growing at an impressive 85% year over year in the second quarter of fiscal 2025, proving that demand remains strong across multiple segments.CrowdStrike’s ability to anticipate and respond to cybersecurity threats makes it a key partner for enterprises navigating an increasingly complex digital landscape.CRWD’s Market Leadership and Strong Customer RetentionDespite fierce competition, CrowdStrike continues to dominate the cybersecurity space, securing multiple eight-figure contracts in the last reported quarter, proving its ability to attract high-value customers.A significant driver of retention is the Falcon Flex subscription model, which simplifies security adoption by offering modular, scalable cybersecurity solutions. This flexibility encourages long-term commitments, ensuring steady revenue growth and deep customer integration.With 45 of the Fortune 50 relying on CrowdStrike, its market influence is undeniable. Its ability to land and expand within enterprise accounts sets it apart from peers, making it one of the most compelling long-term cybersecurity investments.CrowdStrike Valuation: A Premium Worth PayingAt a forward 12-month price-to-sales (P/S) ratio of 22.51, CrowdStrike trades at a premium compared to the industry average of 3.35. However, market leaders in high-growth industries rarely come cheap.Investors pay up for best-in-class execution, and CrowdStrike’s market leadership, sustained ARR expansion and AI-powered threat intelligence more than justify its valuation. As cybersecurity threats continue rising globally, CrowdStrike’s services will remain in high demand, making the current premium a small price to pay for exposure to this long-term growth story.Forward 12-Month P/S RatioImage Source: Zacks Investment ResearchConclusion: Buy CrowdStrike Stock NowCrowdStrike’s impressive stock recovery is not just a rebound — it’s a testament to its resilience, innovation and market dominance. With strong financials, continuous product enhancements and a growing enterprise customer base, it remains one of the best cybersecurity investments available.As businesses continue prioritizing AI-driven cybersecurity solutions, CrowdStrike’s leadership in threat prevention, response and recovery will only strengthen. For investors seeking exposure to the rapidly expanding cybersecurity market, CRWD remains a must-own stock.CrowdStrike carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Fortinet, Inc. (FTNT): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks