Down by Almost 30% in the Last Year, Is CrowdStrike Stock a Buy Yet?
CrowdStrike (NASDAQ: CRWD) is undeniably a great story among cybersecurity companies. The cloud-based endpoint security software stock is up by over 200% since it went public in 2019. But CrowdStrike has gone through some growing pains too. Shares are down by 35% from the all-time high they set in late 2021, and are down by around 28% over the last 12 months. With 2022's bear market still raging on, has this high-growth cybersecurity leader slipped to the point where it's a buy yet?
Long gone are the days when we could focus on a company's impressive sales growth and watch the stock rocket higher. With the Federal Reserve hiking interest rates and tightening the money supply to combat high inflation, the market has been throwing a tantrum over companies with high revenue growth rates but little to no profitability.
The good news about CrowdStrike is that it delivers on both fronts. In its fiscal 2023 second quarter, which ended July 31, revenue rose 58% year over year to $535 million. Free cash flow (an important profitability metric) increased 85% to $136 million, giving it a healthy free cash flow profit margin of 25%. As this software-as-a-service outfit expands, its operation is getting more efficient and margins are rising -- making it exactly the type of company investors favor these days.
Source Fool.com
