We recently compiled a list of the Jim Cramer Recommends These 10 Stocks. In this article, we are going to take a look at where CrowdStrike Holdings Inc. (NASDAQ:CRWD) stands against the other stocks recommended by Jim Cramer.
In a recent episode of Squawk on the Street, Jim Cramer discussed how global markets have become more interconnected than ever. He compared this to 1987, when Japan’s influence on U.S. stocks was clear, with Japanese investors driving up prices in sectors like waste management and railroads. This connection between markets was strong then, and it’s even stronger now.
“Obviously, we went down on Japan, and we went up on Japan. This is somewhat reminiscent of 1987, when, if Japan was up, they’d come over and flood our markets. Sometimes they didn’t care; they’d just start buying stocks, often starting with waste management and Browning-Ferris. “
Cramer explained that the weakening dollar further enhances this global link, benefiting companies that sell internationally, such as Coca-Cola. He also observed a significant shift in investor behavior—where people once looked for reasons to stay out of the market, they now seem more inclined to stay in, finding optimism even in bad news. This change in attitude mirrors today’s market environment, where good news lifts stocks, and even bad news is met with hope for a recovery.
“Back in the day, you’d wonder why Browning-Ferris was up, and the answer would be, ‘Large buyer, large buyer, large buyer.’ Eventually, you’d go out for a beer, and it turns out it’s Tokyo. They loved the rails. There was such craziness back then, but now, we’re even more linked. And with the dollar continuing to weaken, it’s good that we’re linked for companies like that.”
Jim Cramer noted the irony of discussing September as a traditionally bad month for the market. He pointed out that when people focus too much on a specific month being negative, it often doesn’t turn out that way. Cramer also mentioned that despite this expectation, the market had been up significantly, making last week’s market behavior seem unusual.
“Well, it’s funny. You talked about September being a bad month last week, so maybe we get there in a roundabout way. I know that when you single out a month, that’s often when it doesn’t happen. But I also know that we’re up big, and last week seemed odd.”
Our Methodology
For this article, we reviewed a recent episode of Jim Cramer’s Squawk on the Street and his post on the key things to watch in the stock market for Monday. We selected ten stocks that he mentioned and included information on hedge fund sentiment for each. The stocks are ranked by the number of hedge funds that own them, from lowest to highest.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Security personnel at their consoles, monitoring a global network of threats in real-time.
CrowdStrike Holdings Inc. (NASDAQ:CRWD)
Number of Hedge Fund Investors: 69
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is a leading player in the cloud-native endpoint security space, known for its Falcon platform that offers extensive protection against various cyber threats, including malware, ransomware, and advanced persistent threats. CrowdStrike Holdings Inc. (NASDAQ:CRWD)’s strong financial performance is highlighted by significant revenue growth, high profitability, and increasing subscription revenue. Its subscription-based model provides reliable, recurring income, bolstered by a growing customer base and expanded product offerings.
Jim Cramer reports that Bernstein has reduced its price target for CrowdStrike Holdings Inc. (NASDAQ:CRWD) ahead of the company’s earnings report scheduled for August 28. Analysts believe that the recent global IT outage is not expected to significantly impact CrowdStrike Holdings Inc. (NASDAQ:CRWD)’s customer retention.
“Bernstein lowered its price target on Crowdstrike to $315 a share from $381 ahead of the cybersecurity company’s earnings report Aug. 28. Analysts argued that elevated churn tied to the global IT outage last month seems unlikely. While margins may take a near-term hit, analysts expect a rebound over the longer term.”
CrowdStrike Holdings Inc. (NASDAQ:CRWD)’s robust customer acquisition and retention, including major enterprises and government agencies, further solidify its growth prospects and stability, making it a compelling investment opportunity.
Carillon Eagle Mid Cap Growth Fund stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q2 2024 investor letter:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD), a security software provider, reported strong earnings results, which stood in contrast to some competitors. Strength in endpoint security, cloud security, vulnerability management, and identity protection drove revenue growth and profitability ahead of expectations for the quarter and outlook. The cyber threat environment remains elevated, and it is likely that the rise of artificial intelligence (AI) will make it easier for criminals and threat actors to design and launch sophisticated attacks, increasing the need for CrowdStrike.”
Overall CRWD ranks 5th on our list of the best stocks to buy according to Jim Cramer. While we acknowledge the potential of CRWD as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
