2 Cybersecurity Stocks Wall Street Predicts Will Rally 35% or More

: CRWD | CrowdStrike Holdings Inc. Cl A News, Ratings, and Charts

CRWD – The cybersecurity industry is expected to grow markedly, driven by growing demand and increased government investments amid a perceived heightened cyberattack risk from Russia. Thus, Wall Street analysts expect the stocks of fundamentally solid cybersecurity companies CrowdStrike (CRWD) and Okta Inc (OKTA) to surge more than 35% in price in the near term. Read on.

The cybersecurity industry has been booming over the past few years due to an increased need for companies to shield their businesses from data breaches, identity theft, and other cyber-attacks in the digital age. Because most companies have shifted their operations online and adopted various digital tools since the COVID-19 pandemic, the risk of cybercrime has grown dramatically.

As the Russia-Ukraine war intensifies, economists at Goldman Sachs have alerted Americans to the potential for Russian cyberattacks due to its intensifying standoff with the U.S. and its allies. The governments and major corporations in these countries are spending an increased amount on cybersecurity.

Given these factors, Wall Street analysts expect quality cybersecurity stocks CrowdStrike Holdings, Inc. (CRWD) and Okta, Inc. (OKTA) to rally in price in the coming months.

Click here to checkout our Cybersecurity Industry Report for 2022

CrowdStrike Holdings, Inc. (CRWD)

CRWD in Sunnyvale, Calif., offers cloud-delivered endpoint and cloud workload protection solutions in the U.S. and internationally. The company provides various cloud modules on its Falcon platform via an SaaS model that covers various security markets. CRWD sells subscriptions to its Falcon platform and cloud modules through its direct sales team.

On March 2, 2022, CRWD introduced a fully managed identity threat protection solution, powered by Falcon Complete, to provide identity threat prevention and IT policy enforcement with expert management. The  product is expected to expand CRWD’s customer base and boost its revenues.

In its fiscal 2022 fourth quarter, ended Jan. 31, 2022, CRWD’s total revenue increased 62.7% year-over-year to $431.01 million. Its  gross profit grew 60.6% year-over-year to $318.39 million.

The $440.75 million consensus revenue estimate for its fiscal 2023 first quarter, ending April 31, 2022, represents 45.5% year-over-year growth. And the $0.18 consensus EPS estimate for the current quarter represents a 78.2% year-over-year rise from the prior-year period. The company also has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of all the trailing four quarters.

CRWD stock has gained marginally in price over the past month. And among  the 23 Wall Street analysts that rated CRWD, 22 rated it Buy, while one rated it Sell. The 12-month median price target of $264.00 indicates a 38.2% potential upside from yesterday’s crossing price of $191.02. The price targets range from a low of $212.00 to a high of $340.00.

Okta, Inc. (OKTA)

OKTA in San Francisco provides an identity management platform in the U.S. and internationally. The company offers Okta Identity Cloud, Adaptive Multi-Factor Authentication, Lifecycle Management, API Access Management, Advanced Server Access, Gateway Access, customer support, and professional services. It serves enterprises, small- and medium-sized businesses, universities, and government agencies.

On March 8, 2022, OKTA and Ingram Micro Inc. expanded their go-to-market relationship to more than 40 countries globally, including Europe and the Asia Pacific. This partnership might allow OKTA to access new markets and boost its business growth.

On Dec. 8, 2021, OKTA and Adaptive Shield, a leading SaaS Security Posture Management (SSPM) company, announced a tech integration to deliver an integrated solution for SaaS security, Identity and Access Management (IAM). The collaboration might boost the company’s profitability.

OKTA’s total revenue increased 63.2% year-over-year to $383.02 million in its  fiscal 2022 fourth quarter, ended Jan.31, 2022. OKTA’s gross profit rose 51.8% year-over-year to $263.51 million.

Analysts expect OKTA’s revenue for its  fiscal 2023 first quarter, ending April 31, 2022, to come in at $389.11 million, representing a 55% year-over-year increase.

OKTA stock has slumped 25.6% in price year-to-date. However, the 12-month median price target of $233.71 indicates a 41% potential upside from yesterday’s closing price of $165.72. Among the 24 Wall Street analysts that rated OKTA, 20 rated it Buy, while four rated it Hold. The price targets range from a low of $195.00 to a high of $273.00.

Click here to checkout our Cybersecurity Industry Report for 2022


CRWD shares were trading at $195.00 per share on Friday afternoon, up $3.98 (+2.08%). Year-to-date, CRWD has declined -4.76%, versus a -10.83% rise in the benchmark S&P 500 index during the same period.


About the Author: Mangeet Kaur Bouns


Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions. More...


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