Put this “Earnings Monster” in Your Portfolio Today

Michael Robinson

Friday, October 07, 2022

Finland hasn’t even officially entered NATO — but it’s already at war.

To be clear, it’s not in a shooting war. No bullets or missiles have been fired.

Instead, this nation is facing the prospect of an attack on its infrastructure and computer systems, and a blow to its critical-defense networks.

I’m talking, of course, about cyber-attacks.

Military experts say Finland is one of several European nations that Russia-linked hackers have attacked. Russians are also believed to have launched cyber-attacks on Ukraine, Poland, Estonia, Lithuania, and Sweden.

Finland’s not taking any chances. It recently announced it’ll help cover the costs for businesses to secure their computer networks.

This story reveals how important cyber-security has become, and why this sector will soon be worth $376 billion.

Now I’ve uncovered a new leader in the cyber sector that’s also a great investment…

And today, I’ll show you why it’s on pace to quickly double its earnings.

Russia Cranks Up Its Cyber-Attacks

Here’s what you need to understand about Finland joining NATO:

The 1,300-mile border it used to share with Russia will now be controlled by NATO!

Putin isn’t happy about this at all. But he can’t move troops to the border; he’s having enough trouble in Ukraine.

That explains why Russia has cranked up its cyber-attacks on NATO member-states, as well as on U.S. assets.

To counter this offensive, Finland is offering small businesses access to up to $15,000 to build out their cyber-security networks.

But Finland’s not alone. The other nations that share a border with Russia need to enhance their cyber-security, too. That’s why countries including Estonia and Latvia are building so much security into their digital products.

NATO Aims to Gain the Cyber-Edge

Last April, 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’re all using off-the-shelf tools.

Then, in June, NATO announced the adoption of a new strategic concept to help guide its defense: it now identifies Russia as the "most significant and direct threat" to the security and stability of NATO allies.

As it’s probably becoming clear to you, NATO is doing everything in its power to gain the cyber-edge.

And this is one of the key reasons I’d like to introduce you to CrowdStrike (CRWD)

Introducing: CrowdStrike

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.

The SolarWinds Hack of 2021

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.

Gaining Ground with the Military

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.

An Earnings Monster Emerges

But here's where this story gets interesting for investors like you:

While CrowdStrike has been busy helping keep cyber criminals at bay, it’s also been transforming itself into an earnings monster.

For example, in the most recent quarter, per-share profits jumped a stunning 227%. Furthermore, that figure is in-line with the average the firm has posted over the last three years.

But let’s be conservative. Let’s project future growth that’s just 25% as strong. Even at that level, we’d see per-share earnings double in about 18 months. And as you know, as earnings grow, so do stock prices.

Bottom line: CrowdStrike is a winner that can protect computer systems and nations. And for investors like us, it can help fortify our portfolios.

Cheers and Good Investing,

Chief Investment Officer
Trend Trader Daily

Tags: cyber-security russia