Key Points
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Stock splits have seen a significant resurgence in recent years.
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Historically, companies undergoing stock splits tend to outperform the broader market.
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CrowdStrike demonstrates exceptional growth and enjoys strong consensus support from Wall Street.
In recent years, stock splits have regained popularity, fueled by climbing corporate profits and rising share prices. While this practice was a hallmark of the late 1990s, it eventually faded before its recent comeback. Historically, a stock split serves as a signal of high-level corporate performance, often following years of robust financial results that have driven share prices beyond the reach of many individual investors.
Data suggests that these high-performing companies often continue to outpace their industry peers. According to research by BofA analyst Jared Woodard, companies that announce stock splits generate average price increases of 25% in the following year, significantly outperforming the 12% average gain seen in the S&P 500.
Let’s examine a recent stock split candidate that Wall Street believes possesses substantial remaining upside.
Image source: Getty Images.
AI-Driven Cybersecurity Leadership
While artificial intelligence (AI) has become a dominant market theme recently, CrowdStrike Holdings (NASDAQ: CRWD) integrated AI into its cybersecurity empire well before it became a mainstream trend. The company’s Falcon platform provides cutting-edge threat protection, powered by Charlotte AI, which is specifically engineered for the era of generative and agentic AI.
The demand for such sophisticated security is escalating. According to IBM, the global average cost of a data breach reached $4.44 million last year, a figure that continues to climb as AI-driven exploits become more advanced.
CrowdStrike has established itself as a pioneer in the field, earning a position as a Leader in Gartner‘s 2026 Magic Quadrant for Endpoint Protection for the seventh year in a row. Additionally, the company was named a Leader in Gartner’s inaugural 2026 Magic Quadrant for Cyberthreat Intelligence Technologies, recognized for its superior execution and strategic vision.
The company’s financial metrics are equally impressive. For its fiscal 2027 first quarter (ended April 30), CrowdStrike reported a 26% year-over-year revenue increase to $1.39 billion, bolstered by record annual recurring revenue (ARR) of $5.5 billion, a 24% increase. This growth propelled adjusted earnings per share (EPS) up 51% to $1.10.
Wall Street maintains a bullish outlook on the company. Of 54 analysts surveyed in June, 78% maintained a “buy” or “strong buy” rating. The average price target sits at approximately $712, representing a 10% upside from Wednesday’s close.
However, some analysts are even more optimistic. Catharine Trebnick of Rosenblatt Securities has issued a price target of $825—the highest among her peers—implying a potential 27% rally from recent levels. Following CrowdStrike’s “outstanding” Q1 results, Trebnick noted that the convergence of frontier AI models and cybersecurity has transformed the Falcon platform into essential AI infrastructure.
This assessment is supported by recent industry developments. When AI startup Anthropic released its Claude Mythos Preview, the model identified thousands of high-severity vulnerabilities across major operating systems and web browsers. In response, Anthropic formed a coalition to mitigate these threats, inviting CrowdStrike as one of only two cybersecurity firms to participate.
While CrowdStrike’s valuation may be high for value-oriented investors—currently trading at 111 times forward earnings—its historical performance is remarkable. The stock has surged 362% over the last three years, far exceeding the S&P 500’s 71% return, justifying its premium valuation for many growth investors.
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