CrowdStrike and SentinelOne: Investment Opportunities in Cybersecurity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Market Growth Potential: The cybersecurity market is expected to double in the coming years, with CrowdStrike projecting its total addressable market to reach $140 billion by 2026 and $300 billion by 2030, indicating strong growth potential that investors should capitalize on.
- Revenue Comparison: CrowdStrike generated nearly $4.6 billion in revenue over the past 12 months compared to SentinelOne's $956 million; while both companies exhibit similar growth rates, CrowdStrike's market leadership provides it with a significant profitability advantage.
- Valuation Discrepancy: Despite CrowdStrike's price-to-sales ratio of 24, which is above the typical range for software companies, it is regarded as the best-in-class investment opportunity in cybersecurity, justifying its premium valuation, whereas SentinelOne trades below five times sales, highlighting its long-term growth potential.
- Investment Strategy: As the importance of cybersecurity continues to rise with the emergence of AI-assisted attackers, owning both CrowdStrike and SentinelOne stocks represents a wise long-term investment choice that can benefit from future market dynamics.
Analyst Views on CRWD
Wall Street analysts forecast CRWD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRWD is 562.25 USD with a low forecast of 353.00 USD and a high forecast of 640.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
23 Buy
11 Hold
0 Sell
Moderate Buy
Current: 453.770
Low
353.00
Averages
562.25
High
640.00
Current: 453.770
Low
353.00
Averages
562.25
High
640.00
About CRWD
CrowdStrike Holdings, Inc. is a global cybersecurity company that provides cloud-delivered protection of endpoints, cloud workloads, identity and data. Its Falcon platform is designed for cybersecurity consolidation, purpose-built to stop breaches. The platforms collect and integrate data from across the enterprise, including endpoints, cloud workloads, identities, and third-party sources. It offers 29 cloud modules on its Falcon platform via a software as a service (SaaS) subscription-based model that spans multiple large markets, including corporate endpoint and cloud workload security, managed security services, security and vulnerability management, information technology (IT) operations management, identity protection, next-generation security information and event management (SIEM) and log management, threat intelligence services, data protection, SaaS security posture management, automation and response (SOAR) and artificial intelligence powered workflow automation, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
