Despite pressure on the AI space weighing on technology stocks, CrowdStrike Holdings Inc. (NASDAQ: CRWD) stands out as one of the most-upgraded stocks by analysts in recent periods. This makes sense: shares of CRWD have almost doubled year to date (YTD) and the company is enjoying major partnerships with Amazon's (NASDAQ: AMZN) AWS and Cerebras Systems (NASDAQ: CBRS), among others. CrowdStrike is not only a beneficiary of the recent rotation back into cybersecurity, but likely a primary driver as well.
Despite ratings upgrades, a consensus may be emerging among analysts that CrowdStrike's massive rally has left it overpriced. Shares of CRWD are about 13% above the consensus price estimate of $187.91, suggesting some downside may be in store. Fortunately for investors, there is a range of AI cybersecurity and adjacent companies positioned not to be direct CrowdStrike competitors, yet still able to find an important niche in this evolving landscape.
