These fast-growing tech companies are executing well, yet an investment in their shares may not make sense.Despite the market tumbling lower so far in 2025, many growth stocks still seem to have stretched valuations. Two that I wouldn't touch with a 10-foot pool at their current prices are cybersecurity specialist CrowdStrike (CRWD -3.25%) and data analytics software company Palantir Technologies (PLTR -5.61%).These are two great, well-managed companies. But, in my view, their stock prices simply bake in to ...

CrowdStrike TodayCRWDCrowdStrike$398.77 +20.11 (+5.31%) 52-Week Range$200.81▼$455.59P/E Ratio781.92Price Target$400.88Add to WatchlistAt a time when investors are looking for growth wherever they can get it, CrowdStrike Holdings Inc. NASDAQ: CRWD stock is up 7% in the last month and over 10% in 2025. And if analysts are correct, CrowdStrike still has plenty of room to run. That’s because cybersecurity remains a must-have, not a nice-to-have for its customers in 2025. In January 2025, the World Economic For ...

Company Overview - CrowdStrike Holdings (CRWD) stock closed at $378.66, with a slight increase of +0.2% compared to the previous day, underperforming the S&P 500's daily gain of 0.79% [1] - The stock has increased by 6.83% over the past month, contrasting with a 4.81% loss in the Computer and Technology sector and a 3.56% loss in the S&P 500 [1] Earnings Projections - CrowdStrike is expected to report earnings of $0.65 per share, reflecting a year-over-year decline of 30.11%, while revenue is projected to be $1.1 billion, indicating a 19.93% increase compared to the same quarter last year [2] - For the annual period, earnings are anticipated to be $3.40 per share, with revenue expected to reach $4.78 billion, representing changes of -13.49% and +20.86% respectively from the previous year [3] Analyst Forecasts - Recent revisions to analyst forecasts for CrowdStrike are crucial as they indicate shifts in near-term business trends, with positive changes suggesting analyst optimism regarding the company's performance [4] - The Zacks Consensus EPS estimate has decreased by 37.65% in the past month, and CrowdStrike currently holds a Zacks Rank of 4 (Sell) [6] Valuation Metrics - CrowdStrike is trading at a Forward P/E ratio of 111.02, which is significantly higher than its industry's Forward P/E of 58.38 [7] - The company has a PEG ratio of 5.17, compared to the Security industry's average PEG ratio of 3.06, indicating a premium valuation relative to growth expectations [7] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [8] - Research indicates that industries in the top 50% of the Zacks Rank tend to outperform those in the bottom half by a factor of 2 to 1 [8]

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Core Viewpoint - The recent rally in shares of cybersecurity companies CrowdStrike, Palo Alto Networks, and Fortinet is attributed to a 90-day pause on proposed tariffs and positive company-specific news, with respective stock increases of 13%, 6%, and 13% [1] Group 1: Company Performance - CrowdStrike, Palo Alto Networks, and Fortinet reported sales growth between 14% and 25% in their latest quarters, showcasing their status as both growth and defensive stocks [3] - CrowdStrike's newer products for identity protection, cloud security, and security information management saw growth rates between 70% and 140% year-over-year [7] - Palo Alto Networks achieved sales growth of 14%, remaining performance obligations (RPO) growth of 21%, and next-generation annual recurring revenue (ARR) growth of 37% in its latest quarter [9] - Fortinet has delivered 30% annualized returns since its IPO in 2009, maintaining a strong position in the firewall niche alongside Palo Alto [11] Group 2: Market Trends - A survey by Red Canary indicated that 63% of companies increased their cybersecurity spending, yet only 37% felt it was sufficient for complete security [4] - The need for cybersecurity solutions is expected to grow, particularly with the rise of AI threats, as 62% of security leaders reported that AI makes it harder to ensure business safety [5] Group 3: Investment Considerations - CrowdStrike is projected to reach $10 billion in annual recurring revenue by 2031, up from $3.9 billion today, despite its current high valuation of 84 times free cash flow [7] - Palo Alto Networks' shift to a platform model has shown early success, and if sales and free cash flow growth align with its 21% growth in RPOs, it could be a strong investment at 40 times free cash flow [10] - Fortinet is noted for better shareholder value protection, having reduced its share count by 5% over the last five years, compared to increases in share counts for CrowdStrike and Palo Alto [12][13]

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CrowdStrike (CRWD) and Fortinet (FTNT) are both leading the cybersecurity landscape and playing critical roles in securing organizations from rampant security breaches, but in very different ways. While CrowdStrike is fully cloud-native, FTNT combines a variety of hardware and cloud-based security solutions.Both CrowdStrike and Fortinet are benefiting from the rapid expansion of the cybersecurity space, driven by the rise of advanced threats like credential theft, remote desktop protocol breaches and social ...

CrowdStrike TodayCRWDCrowdStrike$324.36 +2.73 (+0.85%) 52-Week Range$200.81▼$455.59P/E Ratio636.01Price Target$400.88Add to WatchlistCrowdStrike Holdings Inc. NASDAQ: CRWD stock has turned positive after a peak-to-trough drop of around 12% after the Trump administration announced sweeping new tariffs that caught many investors off guard. The tariff announcement is the latest headwind for technology stocks, including cybersecurity stocks that were among the biggest gainers in 2024. It’s too early to know th ...

Group 1: Market Overview - The market is experiencing a significant drawdown, but it is not at "crash" levels, prompting investors to prepare a buying list for potential opportunities [1] - Emotional decision-making can hinder investment strategies during downturns, emphasizing the importance of pre-research [1] Group 2: Taiwan Semiconductor Manufacturing (TSM) - Taiwan Semiconductor is a crucial chip foundry, fabricating chips for various electronic devices, making it a strong investment for future technology advancements [2] - The chip industry is cyclical, with demand fluctuating based on manufacturing supply and end-user demand, leading to potential stock crashes during downturns [3] - Despite volatility, Taiwan Semiconductor's integral role in cutting-edge technology makes it a valuable long-term investment [4] Group 3: MercadoLibre (MELI) - MercadoLibre is a leading e-commerce and fintech platform in Latin America, combining features of Amazon and PayPal, providing global diversification for investors [6] - The company may be less affected by domestic issues in Latin America during a global market crash, although its stock could still sell off due to its U.S. listing [6] - Latin America is still developing its e-commerce and fintech sectors, suggesting continued growth potential despite potential global recessions [7] Group 4: CrowdStrike (CRWD) - CrowdStrike is a major player in cybersecurity software, essential for companies to operate securely and maintain customer trust [8] - The company is expected to retain its current customers during a market downturn, providing stability with potential for strong recovery post-recession [9] - Despite its high valuation, CrowdStrike may experience deeper sell-offs during a crash, but is likely to rebound significantly as market conditions improve [10] Group 5: Investment Strategy - The focus is on stocks that may decline significantly during a market crash but are expected to rebound strongly as the market recovers, aligning with a long-term investment strategy [11]

Core Insights - Louis Stevens is a highly regarded investment analyst with a background as a former U.S. Army engineer officer, holding an MBA and a BA in political science [1] - He founded L.A. Stevens Research and developed the LAS Index, which is a selection of stocks that has consistently outperformed market indices since its inception [2] Company Overview - L.A. Stevens Research is the company behind the LAS Index, which utilizes a proprietary investment selection method [2] - The LAS Index has shown a track record of success, appealing to a wide range of investors from beginners to seasoned professionals [2]