Key Points

Stock splits have made a comeback in recent years.
Historically, stock split stocks tend to outperform the broader market.
CrowdStrike has a strong history of growth and support from Wall Street analysts overall.

Stock splits have grown more common again lately thanks to rising corporate earnings and climbing share prices. The practice was widespread in the late 1990s, then faded before returning to favor. Such moves often signal strong company performance built on years of solid results that have pushed prices beyond the reach of many retail investors.

These high-performing names have tended to keep leading their peers. Data from BofA analyst Jared Woodard shows that firms announcing splits deliver average price gains of 25 percent in the following year, outpacing the 12 percent average advance for the S&P 500.

Consider one recent stock split that still offers meaningful upside potential according to market watchers.

AI Built into Its Core

Artificial intelligence has drawn heavy attention lately, yet CrowdStrike Holdings has developed a cybersecurity platform that incorporated AI well before the current wave. Its Falcon system delivers advanced threat defense through Charlotte AI, built specifically for generative and agentic AI environments.

Demand for these protections continues to rise. IBM data shows the worldwide average cost of a data breach reached 4.44 million dollars last year, with risks growing each year as AI tools help uncover new vulnerabilities.

CrowdStrike remains a leader in its field. It earned recognition as a Leader in Gartner's 2026 Magic Quadrant for Endpoint Protection for the seventh straight year and was also named a Leader in the firm's first 2026 Magic Quadrant for Cyberthreat Intelligence Technologies based on vision and execution.

Financial results underscore the momentum. In fiscal 2027 first quarter ended April 30, revenue rose 26 percent year over year to 1.39 billion dollars on record annual recurring revenue that increased 24 percent to 5.5 billion dollars. Adjusted earnings per share climbed 51 percent to 1.10 dollars.

Wall Street remains positive overall. Of 54 analysts covering the stock in June, 78 percent rated it buy or strong buy, with an average price target near 712 dollars pointing to roughly 10 percent further upside from Wednesday's close.

One analyst stands out with greater optimism. Rosenblatt Securities analyst Catharine Trebnick set a target of 825 dollars, the highest on the Street, which would represent gains of as much as 27 percent from the prior close. She described the first-quarter report as outstanding and noted that the blend of frontier AI models and cybersecurity has made the Falcon platform essential AI infrastructure.

That view aligns with recent developments. When AI startup Anthropic launched its Claude Mythos Preview, the model identified thousands of high-severity vulnerabilities across major operating systems and browsers. Anthropic assembled a group to tackle the issues, and CrowdStrike was among just two cybersecurity firms invited to join.

The valuation may deter some value-focused investors. Shares trade at 111 times forward earnings, a premium level. Still, the stock has advanced 362 percent over three years, more than five times the 71 percent gain of the S&P 500, which helps explain the elevated multiple.

Should Investors Add CrowdStrike Shares Today?

Before purchasing shares, review the following points.

Analysts at Motley Fool Stock Advisor recently highlighted what they view as the 10 strongest stocks for investors to own now, and CrowdStrike did not appear on that list. The 10 names selected could deliver substantial returns over the next several years.

For context, when Netflix was added to the list on December 17, 2004, a 1,000 dollar investment then would be worth 442,220 dollars today. When Nvidia joined on April 15, 2005, the same 1,000 dollar stake would now equal 1,230,114 dollars.

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Bank of America serves as an advertising partner of Motley Fool Money. Danny Vena, CPA holds shares of CrowdStrike. The Motley Fool maintains positions in and recommends CrowdStrike and International Business Machines. The Motley Fool recommends Gartner and follows a disclosure policy.

The opinions expressed here belong to the author and may not reflect the views of Nasdaq, Inc.