CrowdSrike Stock Is up 167% in the Last Year: Here’s Why Even More Is Coming

CRWD (TSX:CRWD) stock already demonstrated it can achieve huge growth. But with focus on cybersecurity, there is even more to come.

| More on:
A worker drinks out of a mug in an office.

Source: Getty Images

It’s not often that we focus on American companies that Canadian investors should buy. However, it’s quite possible to invest in stocks in the United States market. In fact, doing this can provide you with a far more diversified portfolio, with access to some of the safest companies in the world!

One of those companies you might want to consider in this case is CrowdStrike Holdings (NASDAQ:CRWD). There are both macro and micro reasons for this, but there is also one glaringly obvious reason as well. The share price is up a whopping 167% for CRWD stock in the last year alone. So, let’s get into why this company has more growth potential on the way.

Created with Highcharts 11.4.3CrowdStrike PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Financially sound

CRWD stock has already proven that it can continue to be profitable, even during some of the hardest times on the market. That’s because cybersecurity has proven to be quite essential for companies and, indeed, governments around the globe.

This was demonstrated during earnings, where the company recently reported revenue of US$2.17 billion, a 62% increase year over year. Furthermore, the stock became even closer to profitability, reporting a net loss of US$244.7 million for the last year. Still, it should now turn towards a profit for this year.

Even so, the company continues to hold solid free cash flow, allowing them financial flexibility to continue reinvesting in the company. What’s more, it holds a healthy gross margin of 78%, so the stock continues to be quite efficient in generating profit from revenue. So, once that loss is gone, it doesn’t look likely to come back.

Strong growth on the way?

First off, why are investors interested in CRWD stock in the first place? The company is an endpoint protection and cloud security company. It offers a suite of services and products, all aimed at keeping organizations safe from cyber threats. Not only can it detect issues, but it also provides intelligence on how to prevent them in the future — hence, why the company has been of such focus.

With everything online and digital, that information needs to be protected. And CRWD stock has seen a lot of growth from this. Projected earnings growth is now estimated at 91.6% year over year by analysts. And that could translate to an even higher stock price.

Part of this growth comes from a recurring revenue model, with subscriptions generating income again and again. This provides the stock with stability, predictability, and the ability to grow further.

Industry leader

Furthermore, CRWD stock is a leader in the endpoint security market. It holds a strong reputation, with advanced abilities to detect threats. What’s more, the stock boasts a diverse customer base that continues to grow all the time. In fact, a large number of the company’s client base are Fortune 500 companies. That makes it easier to trust, knowing some of the largest companies in the world already do.

The stock is also known for innovation in the field. And that needs to be kept up if the company hopes to compete. CRWD stock actively invests in research and development, improving the platform and introducing new features. Both to protect more but also make it easier for customer use. This focus should keep them ahead of the curve for the foreseeable future.

And that will be necessary as more and more companies continue to enter the cybersecurity space. Yet this space is essential for the future — a future where CRWD stock will likely play a large role.

Should you invest $1,000 in Spin Master right now?

Before you buy stock in Spin Master, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Spin Master wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends CrowdStrike. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Tech Stocks

Tech Stocks

The Smartest Tech Stock to Buy With $4,000 Right Now

Down almost 50% from all-time highs, this tech stock offers significant upside potential to shareholders in May 2025.

Read more »

Income and growth financial chart
Tech Stocks

2 Canadian Stocks That Could Turn $10,000 Into $100,000

If you're looking for growth and income, these two are some of the best options out there.

Read more »

money goes up and down in balance
Tech Stocks

1 Magnificent Tech Stock Down 27% to Buy and Hold Forever

Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) is starting to look severely undervalued after its latest drop!

Read more »

ways to boost income
Tech Stocks

1 Undervalued TSX Stock Down 18% to Buy and Hold

This TSX stock remains down but is due for a huge comeback for investors.

Read more »

grow money, wealth build
Tech Stocks

This TSX Stock Down 20% Could Triple Your Money by 2028

Down 20% from its 52-week high, this TSX stock is positioned to more than triple investor returns over the next…

Read more »

money goes up and down in balance
Tech Stocks

The Smartest Canadian Stock to Buy With $600 Right Now

The Canadian stock market has some big winners trading at discounted share prices, ripe for the taking, and here’s one…

Read more »

Muscles Drawn On Black board
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $4,000

Seeking strength from your investments? Then these are the three stocks to consider first.

Read more »

Investor wonders if it's safe to buy stocks now
Tech Stocks

Where Will BlackBerry Be in 4 Years?

With fresh partnerships and a tighter focus, BlackBerry is trying to lay the foundation for long-term growth.

Read more »