Latest news with #CRDO
Globe and Mail
01-07-2025
- Business
- Globe and Mail
2 Top-Ranked Stocks Suited for Momentum Investors
When stocks are cruising near all-time or 52-week highs, it reflects considerable bullishness with trends where buyers are in control. Stocks making new highs tend to make even higher highs, particularly when analysts' positive earnings estimate revisions are present. That's been precisely the case for Credo Techology Group CRDO and Heico HEI, both of which presently sport a favorable Zacks Rank and are trading near 52-week highs with notable momentum. Let's take a closer look at what's been driving the bullish behavior. Credo Benefits from AI Surge Credo Technology, a Zacks Rank #1 (Strong Buy) provides innovative, secure, high-speed connectivity solutions that deliver improved power efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. The company's EPS outlook remains bullish across the board. Credo's latest set of strong quarterly results was fueled by continued strong demand for its services, with the stock a big beneficiary of the AI frenzy. The increased AI spend is set to continue for years, positioning the company nicely to continue reaping the benefits. CRDO crushed our consensus expectations in the above-mentioned release, with sales up a rock-solid 180% year-over-year. Below is a chart illustrating the company's sales on a quarterly basis, with the acceleration visibly seen over the past few periods. HEICO Breaks Records HEICO, a Zacks Rank #1 (Strong Buy), is a growing technology-driven aerospace, industrial, defense and electronics company. Its products are found on large commercial aircraft, regional, business and military aircraft, and more. The company's bullish EPS outlook is illustrated below. Like CRDO above, HEICO is coming off a notably strong quarterly release, posting record Q2 sales and net income. Both items crushed our consensus expectations, with sales growing 15% alongside a 27% boost in net income. Strength was broad across both the company's segments (Flight Support and Electrical Technologies), enjoying sales bumps of 19% and 7%, respectively. Its consolidated operating margin also saw nice expansion, coming in at 22.6% vs. 21.9% in the same period last year. Bottom Line Stocks making new highs tend to make even higher highs, particularly when positive earnings estimate revisions hit the tape. That's precisely what both stocks above – Credo Techology Group CRDO and Heico HEI – have enjoyed, with each sporting a favorable Zacks Rank and seeing their shares trade near 52-week highs. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Heico Corporation (HEI): Free Stock Analysis Report
Yahoo
28-06-2025
- Business
- Yahoo
Credo's Revenue Soars, Attracts Big Money Inflows
CRDO focuses on connectivity solutions for data infrastructure, including integrated circuits, active cabling, and SerDes chiplets. The company is well positioned for AI-based growth, having recently diversified its revenue base with three hyperscalers, each contributing over 10% to overall revenue. Financially, CRDO's fourth-quarter fiscal 2025 report showed $170 million of quarterly revenue, which is a 180% year-over-year increase. Fiscal year 2025 revenue was $437 million, which is a 126% jump over the prior year. Also, CRDO's fiscal year 2026 revenue guidance exceeds $800 million, representing 85% annual growth. No wonder CRDO shares are up 41% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock. Institutional volumes reveal plenty. In the last year, CRDO has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in CRDO shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of technology names are under accumulation right now. But there's a powerful fundamental story happening with Credo. Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, CRDO has had strong sales growth: 1-year sales growth rate (+126.3%) 3-year sales growth rate (+68%) Source: FactSet Also, EPS is estimated to ramp higher this year by +26.2%. Now it makes sense why the stock has been generating Big Money interest. CRDO has a track record of strong financial performance. Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term. Credo has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. It just made the rare Outlier 20 for the first time ever, and there could be more ahead. The blue bar below shows when CRDO was a top pick…Big Money is buying in: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. The CRDO action isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in CRDO at the time of publication. If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights. This article was originally posted on FX Empire Earnings and Inflows Push Heico Shares Up 34% Visa Shares Up 2,655% Since Big Money Bought In Fragile Middle East Truce Heightens Geo-political, Macroeconomic Risks, Including for Europe Core & Main Flashes Bullish Outlier Signals Vistra's Nuclear AI Option, Renewables Draw Inflows Outlier Inflows Boosting Carpenter Technology Sign in to access your portfolio
Yahoo
27-06-2025
- Business
- Yahoo
Are You Looking for a Top Momentum Pick? Why Credo Technology Group Holding Ltd. (CRDO) is a Great Choice
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Credo Technology Group Holding Ltd. (CRDO), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Credo Technology Group Holding Ltd. Currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> Let's discuss some of the components of the Momentum Style Score for CRDO that show why this company shows promise as a solid momentum pick. A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area. For CRDO, shares are up 16.36% over the past week while the Zacks Electronics - Semiconductors industry is up 1.65% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 47.03% compares favorably with the industry's 11.19% performance as well. While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Credo Technology Group Holding Ltd. Have increased 114.22% over the past quarter, and have gained 210.33% in the last year. On the other hand, the S&P 500 has only moved 5.86% and 12.83%, respectively. Investors should also pay attention to CRDO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. CRDO is currently averaging 6,990,481 shares for the last 20 days. The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with CRDO. Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CRDO's consensus estimate, increasing from $1.08 to $1.48 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period. Taking into account all of these elements, it should come as no surprise that CRDO is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Credo Technology Group Holding Ltd. On your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
TD Cowen Maintains Buy on Credo Technology Group Holding (CRDO), Raises PT
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers. On June 18, TD Cowen upped the company's price objective to $95.00 from $85.00, while maintaining a 'Buy' rating, as reported by The Fly. The firm believes that despite its strong progress to date, there is significant runway to its story, which is yet to be seen. This is tied to high-speed connectivity for datacenter artificial intelligence, added the analyst. An engineer in a cleanroom testing and tweaking an integrated circuit. The firm sees Credo Technology Group Holding Ltd (NASDAQ:CRDO)'s growth story as early, open-ended, and diversifying. The company's proprietary technology emphasises low-power, high-speed connectivity solutions, which cater to expanding market opportunities fueled by AI proliferation and faster line-rate speeds in back-end and front-end networks. The firm has tagged datacenter as the most attractive semiconductor end market, and expects that networking infrastructure and connectivity will be the fastest-growing sub-segment in that space. Credo Technology Group Holding Ltd (NASDAQ:CRDO)'s product portfolio consists of Active Electric Cables, optical Digital Signal Processors, and other connectivity-related chipsets. Such products place the company squarely at the intersection of the growing industry verticals, added the firm. For Q1 2026, Credo Technology Group Holding Ltd (NASDAQ:CRDO) expects its revenue to be in the range of $185.0 million – $195.0 million, with GAAP gross margin to be between 63.4% – 65.4%. Renaissance Investment Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said: 'Credo Technology Group Holding Ltd (NASDAQ:CRDO), a provider of connectivity solutions for data centers, was our best performing stock in the fourth quarter. The company's products target the AI-server market with very high bandwidth connectivity rates and low-power solutions. In the most recently reported quarter, the company saw increased demand from current customers along with the ramping of a new customer that drove revenue guidance significantly above expectations. Moreover, the company expects revenues for the next fiscal year to grow by at least 50%. We believe the market share opportunities for Credo are still in the early stages, as the company continues to engage with large hyperscalers and the demand for AI servers and infrastructure remains robust.' While we acknowledge the potential of CRDO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRDO and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
Intel's New CEO Is Dumping This Tech Stock. The Rest of Wall Street Thinks It's a ‘Strong Buy.'
Intel's (INTC) newly appointed CEO, Lip-Bu Tan, has been systematically offloading his position in Credo Technology (CRDO), raising eyebrows amid Wall Street's bullish sentiment on the semiconductor stock. Over a span of just two weeks in June, Tan executed four major sell orders totaling more than $26.5 million worth of shares. The selling spree began June 5 with 75,000 shares sold at $75.20 each, followed by another roughly 103,000 shares on June 12 between $75.33 and $76.05 per share. Tan's largest transaction occurred on June 16, when he dumped 171,473 shares an average of roughly $77.80 each. These 3 Stocks Have Been Hot in 2025. Should You Sell Them Now Before It's Too Late? The 7 Signs Your Stock Is A Buyout Target Is Tesla a Buy or Sell as TSLA Stock Zooms on Austin Robotaxi Launch? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! His final reported transaction occurred June 18, when he sold 54,297 shares at an average price of $86.24. Despite Tan's apparent lack of confidence in the stock, Wall Street analysts maintain a different perspective. Out of the 10 analysts covering CRDO stock, nine recommend 'Strong Buy' and one recommends 'Moderate Buy.' The average target price for the tech stock is $81.50, below the current trading price. Credo Technology delivered solid financial results in its fiscal Q4 (ended in April), posting record revenue of $170 million, a 26% sequential increase and a remarkable 180% year-over-year growth. The connectivity solutions specialist's full fiscal year 2025 revenue reached $437 million, representing a 126% increase from the prior year. This stellar growth showcased Credo's ability to capitalize on surging demand for high-performance data transmission solutions in AI infrastructure deployments. The semiconductor company's success stems from its diversified product portfolio, which spans active electrical cables, optical solutions, and retimers that serve critical applications in Ethernet, PCIe, and emerging AI networks. Active electrical cables have become the industry standard for intra-rack connectivity, with three hyperscalers each contributing over 10% of Credo's AEC revenue in the fourth quarter. CEO Bill Brennan emphasized that AECs are gaining traction as rack-to-rack solutions for distances up to 7 meters, offering superior reliability compared to laser-based optical modules. Credo's optical business achieved significant momentum with a major 800 Gbps DSP win from a U.S. hyperscaler, showcasing the company's industry-leading power efficiency capabilities. At the recent OFC conference, Credo demonstrated an industry-first 800-gig optical module consuming roughly 9 watts, powered by its Lark LRO DSP technology. It also unveiled its 3-nanometer 200-gig-per-lane optical DSP, supporting port speeds of up to 1.6 terabits per second. Credo's economies of scale are driving impressive margin improvements, with Q4 adjusted margins reaching 67.4%, up 354 basis points sequentially. Looking ahead, Credo projects fiscal 2026 revenue exceeding $800 million, representing over 85% year-over-year growth, while expecting non-GAAP net margins to approach 40%. Management plans to further diversify its customer base, with two new hyperscale customers expected to ramp up in the second half of fiscal 2026, thereby reinforcing Credo's position in the rapidly expanding AI infrastructure market, where copper connectivity solutions are becoming increasingly critical for power efficiency and reliability. Investors might be worried about Credo's decelerating growth estimates. Wall Street forecasts Credo to increase sales by 84% year over year to $804 million in fiscal 2026 and by 22.6% to $985.6 million in fiscal 2027. During this period, adjusted earnings are expected to increase from $0.70 per share to $1.91 per share. So, priced at 15x forward sales and 45x forward earnings, CRDO stock trades at a premium in June 2025. The disconnect between Tan's selling activity and analyst recommendations highlights the complex dynamics facing semiconductor companies as they navigate volatile market conditions and shifting technology demands in a competitive landscape. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
