CrowdStrike (CRWD) is known as one of the leading cybersecurity companies in the world, tasked with safeguarding the likes of Microsoft Systems and many other massive businesses.

Last night, though, the firm released an update that sent systems down around the world, leading to many flights being grounded. Windows PCs were stuck with the “blue screen of death”, or the BSoD, putting many operations on pause.

The specific issue has been traced to the CrowdStrike Falcon agent, which affected McDonald’s, United Airlines, the LSE Group, and many more. The treat-monitoring product caused disruptions to Microsoft’s Azure cloud services, leading to a catastrophic IT outage.

The snowball effect has caused problems with Microsoft 365, Microsoft Defender, OneNote, One Drive, Teams, and more. Some of these have already begun to come back live.

CEO George Kurtz was quick to let everyone know this was not a security incident or cyberattack – simply a bug in the deployment of its latest update. The update in question has since been retracted, and it appears a fix is in place.

CRWD fell as much as 17% at one point this morning, but has recovered some of those losses and currently sits around a 9% dip on the day. 

This puts it at a loss of 19% over the last month, curbing a positive price trend that was well underway. From mid-April to the first week of July the stock had rallied more than 33% before tanking on the 8th.

So, for the most part, crisis avoided – but now CrowdStrike will be left to pick up the pieces and deal with the ensuing reputational fallout from this outage. What does that mean for you as an investor, though? 

We’ve taken a look at CRWD through the VectorVest stock analysis software and found 3 reasons it may be time to SELL this stock today. Here’s what you need to see…

CRWD Has Fair Upside Potential and Good Safety, But Poor Timing is Pushing Prices Down

VectorVest is a proprietary stock rating system designed to save you time and stress while empowering you to win more trades with less work. You’re given actionable insights in just 3 simple ratings: relative value (RV), relative safety (RS), and relative timing (RT).

Each is placed on a scale of 0.00-2.00 with 1.00 being the average, making interpretation quick and easy. It gets even better, though, as the system also issues a clear buy, sell, or hold recommendation for any given stock at any given time. As for CRWD, here’s what we found:

  • Fair Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (based on a 3-year price projection), AAA corporate bond rates, and risk. It’s a far superior indicator than the typical comparison of price to value alone. CRWD has a fair RV rating just about the average at 1.03.
  • Good Safety: The RS rating is a risk assessment computed from the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. The RS rating of 1.23 is good for CRWD.
  • Poor Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s looked at day over day, week over week, quarter over quarter, and year over year. As you can see from the stock’s recent performance, CRWD has a poor RT rating of 0.71.

The overall VST rating is right at the average of 1.00 - but CRWD is rated a SELL after today’s debacle. Before you actually make your next move, though, take a moment to dig deeper with this free stock analysis from VectorVest and transform your trading strategy for the better!

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Use VectorVest to analyze any stock free. VectorVest is the only stock analysis tool and portfolio management system that analyzes, ranks and graphs over 18,000 stocks each day for value, safety, and timing and gives a clear buy, sell or hold rating on every stock, every day.

VectorVest advocates buying safe, undervalued stocks, rising in price. CRWD fell as much as 17% after a bug in its latest deployment sent Microsoft systems down worldwide, causing flights to be grounded early Friday morning. While the issue is fixed, the damage is done. The stock may have fair upside potential and good safety, but poor timing earns it a SELL.

Before you invest, check VectorVest! Click here to ANALYZE ANY STOCK FREE and see our system in action!