What To Expect From Crowdstrike On Thursday

Crowdstrike Holdings Inc. is scheduled to report earnings after Thursday’s close. The stock hit a record high of $298.48/share in 2021 and is currently trading near $162/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

The company is expected to report a gain of $0.23/share on $463.11 million in revenue. Meanwhile, the so-called Whisper number is a gain of $0.26/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

The company’s earnings and sales have steadily grown by double and triple digit percent gains in each of the past four quarters. That is very strong growth especially in this environment. The key going forward will be to see if the company can continue posting strong results or if that robust growth begins to wane.

A Closer Look At The Technicals:

The stock has fallen hard in recent months and is now trying to bounce from deeply oversold levels. The bulls want to see the stock gap up and rally after earnings are released and the bears want to see it fall. Stepping back, the bears argue that the stock is forming a bearish head and shoulders pattern which means if the recent lows are breached then lower prices can easily follow. In order to negate that pattern, the bulls want to see the stock trade above $243. For now, the stock is oversold and due to bounce. If it does not bounce, then lower prices will likely follow.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

Disclaimer: The stock was featured in the FindLeadingStocks.com newsletter.