Latest news with #CredoTechnology
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
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
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
Yahoo
20-06-2025
- Business
- Yahoo
Why Credo Technology Stock Was Marching Higher This Week
An analyst raised his price target on the highly specialized tech company. He maintained his buy recommendation as he did so. 10 stocks we like better than Credo Technology Group › Data center connectivity solutions company Credo Technology (NASDAQ: CRDO) won attention from many stock market participants this week, thanks in no small part to an analyst flagging it as a top pick in the small and mid-cap categories. With this pleasant tailwind at its back, Credo's share price was a robust 16%-plus higher as of late Thursday night, according to data compiled by S&P Global Market Intelligence. The pundit behind the price target boost was TD Cowen's Joshua Buchalter, who on Wednesday upped his fair value assessment on Credo stock to $95 per share; previously he had tagged it as potentially being worth $85. In making the change he left his buy rating intact. Not only that; according to reports, Buchalter and TD Cowen now consider Credo his company's best small- or mid-cap idea for 2025. That's meaningful, given the many stocks in those two categories. In his Credo update, the analyst was particularly enthusiastic about the effect of artificial intelligence (AI) demand on Credo's business. Many companies are racing to enhance their products and services with AI functionalities, and data centers must upgrade to handle the huge resource needs of the technology. It hasn't escaped Buchalter's notice that Credo is also a high-growth and high-margin company, and it's entirely possible that management will be able to maintain (or even exceed) the torrid growth it has shown of late. This company's stock is a fine buy on the continued rise of AI, and the prognosticator's optimism is justified. Before you buy stock in Credo Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Credo Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Credo Technology Stock Was Marching Higher This Week was originally published by The Motley Fool
Globe and Mail
18-06-2025
- Business
- Globe and Mail
Bull of the Day: Credo Technology Group (CRDO)
Credo Technology Group Company Overview Zacks Rank #1 (Strong Buy) stock Credo Technology Group ( CRDO ) focuses on building high-speed connections for the internet's 'backbone,' specifically specializing in data centers, AI systems, and cloud computing. In today's high-tech digital world, high-speed connections are paramount. Whether someone is conducting a query through a large language model (LLM) like Alphabet's ( GOOGL ) Gemini or Microsoft ( MSFT ) and Open AI's ChatGpt, streaming a video, or using a cloud service like Apple's ( AAPL ) iCloud, that data must travel efficiently and at lightning speed between different pieces of hardware. Credo's niche is in delivering the specialized components that enable this super-fast, reliable, and energy-efficient data transfer. Credo Has Cash-Rich Clients Credo's products, specifically their Active Electrical Cables (AECs) and Digital Signal Processors (DSPs) are integral for enabling power-hungry AI data centers operated by their clients. CRDO clients include cash-rich big tech companies like Amazon ( AMZN ), Nvidia ( NVDA ), Advanced Micro Devices ( AMD ), and Tesla ( TSLA ). Data Center Buildout Drives Credo's Revenue Data centers are at the heart of Wall Street's fastest-growing industries, including cloud computing, AI, and Bitcoin mining. As big tech companies race for AI supremacy, they spend hundreds of billions of dollars in CAPEX on data centers. Wall Street analysts expect the data center market to more than double over the next five years. CRDO sells the 'picks and shovels' to the AI gold rush, and as a result, Wall Street analysts expect robust triple-digit earnings growth. Image Source: Zacks Investment Research Meanwhile, CRDO has shown a tendency to beat Zacks Consensus Estimates. Over the past four quarters, the company has delivered positive results that were 27% above expectations on average. CRDO Exhibits Relative Strength CRDO's price action matches its fundamental strength and is accelerating. Over the past year, shares have shown relative strength and gained a robust 171%, far outpacing the S&P 500's 9% gains over the same period. Image Source: Zacks Investment Research CRDO shares are currently carving out a picture-perfect cup-with-handle pattern, which will trigger above $81. Bottom Line Credo Technology Group is strategically positioned to capitalize on the explosive growth in data centers, AI, and cloud computing. With its crucial high-speed connectivity solutions, cash-rich clients, and tendency to beat earnings expectations, CRDO presents a compelling investment opportunity. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> 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 Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO): Free Stock Analysis Report
