CrowdStrike (CRWD) Unveils New Services for Public Companies

CrowdStrike CRWD recently introduced the Security and Exchange Commission (SEC) Readiness Services to address the new SEC regulations. The new regulation, enacted by the SEC in July 2023, came with the mandate that required publicly traded companies to report the processes for assessing, identifying and managing material risks from cyber threats in their annual 10-K filing. The regulations compelled the companies to disclose material cyber incidents within four days of identification of such incidents.

To address this matter, CRWD came up with a service that will allow the boards of directors and C-suite executives to get insights on breaches, so they can make materiality decisions and confidently issue annual cyber disclosures. The solution is based on the Falcon XDR platform and uses CrowdStrike’s artificial intelligence capabilities.

The Falcon platform-driven SEC Readiness Services will conduct a thorough technical assessment to identify weaknesses in the company's cybersecurity defense. The company will assist by providing expert support for reviewing risk management practices. These experts will develop exercises for public companies to assess whether a security incident is significant enough to warrant filing an 8-K with the SEC. CRWD has become the first company to provide such a service having a competitive advantage in this part of the service market.

CrowdStrike Price and Consensus

CrowdStrike Price and Consensus

CrowdStrike price-consensus-chart | CrowdStrike Quote

With the surge in hybrid work setups and BYOD culture, safeguarding endpoints and on-premises IT infrastructure is increasingly vital. CrowdStrike's security solutions are now recognized as important cyber defense strategies by its customers, boosting orders and the company's revenues.

The rising need for cybersecurity due to the growth of data breaches presents an opportunity for CrowdStrike. Enterprises encounter persistent and sophisticated cyber threats, underscoring the importance of cybersecurity as a vital and high-profile necessity. Leveraging its extensive experience in the security sector and consistent delivery of essential solutions, CrowdStrike is poised to sustain and expand its market presence.

Moreover, the cybersecurity market is witnessing continuous growth. According to Statista, the global cybersecurity market is expected to reach $183.1 billion in 2024 and $273.5 billion by 2028, witnessing a CAGR of 10.6%.

Similarly, Grand View Research forecasts that the global cybersecurity market will witness a CAGR of 12.3% during 2023-2030. These projections are promising for CrowdStrike, given its diverse product range tailored for safeguarding sensitive data in both large and mid-sized organizations.

Zacks Rank and Other Stocks to Consider

Currently, CrowdStrike carries a Zacks Rank #2 (Buy). Shares of CRWD have surged 154.1% in the past year.

Some other top-ranked stocks from the broader technology sector are BlackLine BL, Adobe ADBE and Dell Technologies DELL, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for BlackLine’s first-quarter 2024 earnings has remained unchanged at 47 cents per share for the past 90 days. Shares of BL have gained 8.4% in the past year.

The Zacks Consensus Estimate for Adobe’s first-quarter 2024 earnings has been revised by 12 cents northward to $4.38 per share in the past 90 days. Shares of ADBE have rallied 72.1% in the past year.

The Zacks Consensus Estimate for DELL’s first-quarter 2024 earnings has been revised downward by 5 cents to $1.35 per share in the past seven days. Shares of DELL have skyrocketed 192.9% in the past year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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