10 Best Enterprise Software Stocks to Buy Now

02. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Average Analyst Share Price Target Upside: 31.00%

Average Analyst Share Price Target: $341.24

At number two on our list of ten best enterprise software stocks to buy right now stands CrowdStrike Holdings, Inc. (NASDAQ:CRWD). It currently has an average analyst share price target of $341.24, suggesting a potential upside of 31.00% from its recent price levels. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) recent challenges, including a major IT outage, have led to a significant drop in its stock price, presenting a potential buying opportunity for long-term investors. Despite the temporary setback, analysts believe the company’s position in the cybersecurity market remains strong. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) Falcon platform continues to offer top-tier security solutions, and the high integration of its services into clients’ systems makes it difficult for customers to switch providers. This creates a substantial economic moat that could help the company weather the current storm and rebound strongly.

Financially, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is in a solid position with impressive cash flow and a fortress-like balance sheet. Analysts think the company’s valuation, now more reasonable after the sell-off, reflects an opportunity for growth. If CrowdStrike Holdings, Inc. (NASDAQ:CRWD) can effectively address the issues from the outage and maintain its growth trajectory, it could offer substantial returns for investors. The company’s strong financials and high switching costs for customers suggest that it remains a valuable asset for long-term portfolios. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock, while currently undervalued around $260, is expected to stabilize and rise over time. Its robust market position and strong performance make it an attractive buy, even with the recent volatility.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its first quarter 2024 investor letter:

“The high demand for cybersecurity systems is unlikely to abate, which benefited CrowdStrike Holdings, Inc. (NASDAQ:CRWD). The company’s expansion beyond endpoint security to offering security on all cloud workloads, along with its growing product suite in areas such as identity and security information & event management, is driving strong demand for its platform among customers amidst a very active cyberthreat environment. That lifted its shares by 25% this quarter, and we trimmed our position.”