Cybersecurity has become increasingly important as the frequency and cost of cyberattacks continue to rise. According to Security Magazine, there are 2,220 cyberattacks every day, which translates to one cyberattack every 39 seconds. The global cybercrime costs are expected to reach $10.5 trillion by 2025.
One company that is capitalizing on this growing market opportunity is CrowdStrike (NASDAQ: CRWD). Their cloud-native artificial intelligence (AI)-powered Falcon platform offers 28 modules to address various cybersecurity needs. Organizations are simplifying their security stacks by using Falcon modules, leading to a 95% increase in deals involving eight-plus Falcon modules in the first quarter of fiscal 2025.
CrowdStrike’s strategic partnerships, such as with cloud service providers and Managed Security Service Providers (MSSPs), have helped in acquiring new customers. The company’s focus on attracting top-tier talent is evident from the high number of applications they receive from potential employees.
In terms of financials, CrowdStrike has been profitable for five consecutive quarters and reported a record free cash flow of $322 million in the first quarter. Analysts expect the company’s revenue to grow significantly in the coming years, making it a potentially lucrative investment opportunity.
Considering all these factors, CrowdStrike’s stock has the potential to be a multibagger, according to consensus analyst estimates. It is trading at a price-to-sales (P/S) multiple of 28.8, and analysts predict significant revenue growth for the company in the future.
Before investing in CrowdStrike or any other stock, it is essential to thoroughly research and consider all factors. The Motley Fool Stock Advisor analyst team has identified what they believe are the 10 best stocks for investors to buy now, and while CrowdStrike is not on that list, it could still be a promising investment opportunity.