Wednesday, November 29, 2023
About a year ago, Finland declared war.
To be clear, it wasn’t a shooting war. No bullets or missiles were fired.
Rather, this nation was facing the prospect of an attack on its infrastructure and computer systems, and a blow to its critical-defense networks.
And it was all because of cyber-attacks.
Around this time, I recommended a new leader in the cybersecurity sector. Not only did it have the capability to defend Finland, but I believed it also had the potential to deliver market-beating returns.
Fast forward a bit… and this company’s stock has nearly doubled in 2023.
Now I want to make sure you don’t miss out on another chance to invest in it.
To set the stage, let’s go back a year.
If you recall, Finland was set to join the North Atlantic Treaty Organization (NATO). That meant the 1,300-mile border it used to share with Russia would soon be controlled by NATO members.
This made Russian President Vladimir Putin very unhappy. It meant he couldn’t move troops to the border.
But it also led him to instruct Russia to increase its cyber-attacks on NATO-member states, even on U.S. assets.
That’s when NATO decided to fight back...
In April 2021, NATO held a “Locked Shields” cyber-security exercise, where 30 cyber-defenders across the alliance came together.
The goal was to help provide insights, assistance, and key strategic systems to all members, since they were all using off-the-shelf tools.
Then, in June 2021, NATO announced the adoption of a new strategic concept to help guide its defense: It identified Russia as the “most significant and direct threat” to the security and stability of NATO allies.
I bring this to your attention today because I want to stress an important point: even now, NATO is doing everything in its power to gain a cyber-edge...
And it’s one of the key reasons I want to re-introduce you to a company called CrowdStrike (Nasdaq: CRWD)...
Launched in 2011, CrowdStrike is a relatively new player in the cyber-security sector. But I believe its newness gives it an advantage.
As an upstart, the firm has an ability to identify new cyber-threats and address them with better functionality, as compared to bigger players that are burdened with legacy systems or spread too thin.
But make no mistake: CrowdStrike has become an established leader in securing remote-data centers. It has 15 petabytes (equal to 3.7 million movies) of information stored in the cloud already. In 2020 alone, it stopped more than 75,000 potential breaches.
The volume, frequency, and sophistication of attacks continues to accelerate. Which is why it’s so crucial to have access to the type of powerful tech at which CrowdStrike excels.
Consider the SolarWinds hack in 2021 that was likely led by Russians…
SolarWinds was an IT platform used by the U.S. government and other institutions along with companies like Microsoft. Once the hackers gained access to SolarWinds, they gained access to the entire network. They soon hacked into state and federal government agencies and secure areas within major tech and retail organizations.
Once the hack was discovered, the company turned to CrowdStrike for help. You see, the firm is a leader in Zero Trust security — a strategy to identify, deny, or repel these types of breaches.
Basically, Zero Trust continually ensures that users are only allowed access to specific areas of the network. With each step a user takes inside a digital world, their access is confirmed again and again.
CRWD has established itself as a leader in these new threat environments.
But at the same time, it’s gaining a solid reputation with the military.
For example, CRWD recently earned the U.S. Department of Defense’s Impact Level 4 P-ATO (Provisional Authorization to Operate). This allows CRWD to expand its public-sector footprint by deploying its Falcon cyber-security platform to a wide range of DoD customers.
In layman’s terms, that means it can start taking on Pentagon and defense contractors as clients. It’s currently working on its Level 5 P-ATO to help protect the highly-secure Defense Information Systems Agency and its customers from cyber threats.
But here's where this story gets interesting for investors like you:
You see, CrowdStrike is an earnings powerhouse. Yesterday, it reported that in its third fiscal quarter, earnings per share rose a whopping 105%, beating Wall Street forecasts. That bodes well for the future of this stock, which was up nicely in early trading today.
That tracks with the bulk of this year, by the way, which has seen CrowdStrike's stock climb 96%.
If you are new to the stock, I'd give it a few sessions before entering just to make sure you don't overpay a bit at the beginning of what could be another breakout.
But given the fact that cyber threats aren’t going out of style any time soon, you can bet this company still has plenty of room to run...
Meaning there are more potential returns for investors like us to capture.
Cheers and Good Investing,
Chief Investment Officer
Trend Trader Daily