CREDO TECHNOLOGY GROUP HOLDING LTD (NASDAQ:CRDO) – A Strong Growth Candidate Meeting Minervini’s Criteria

CREDO TECHNOLOGY GROUP HOLDING LTD (NASDAQ:CRDO) stands out as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template, making it a compelling candidate for investors focused on strong technicals and accelerating fundamentals. The company, which develops connectivity solutions for data infrastructure, has demonstrated impressive price momentum alongside robust earnings and revenue growth.

Why CRDO Fits the Minervini Trend Template

Minervini’s strategy emphasizes stocks in strong uptrends with clear technical strength. CRDO meets all key criteria:

• Price Above Key Moving Averages:

  • Current price ($92.20) is well above the 50-day ($59.76), 150-day ($59.72), and 200-day ($53.62) moving averages.
  • Both the 150-day and 200-day MAs are trending upward, confirming long-term strength.

• Relative Strength:

  • CRDO’s relative strength (98.6) indicates it outperforms nearly 99% of the market, a hallmark of leading stocks.

• Price Performance vs. 52-Week Range:

  • The stock is trading within 3% of its 52-week high ($94.995) and is up 78% from its 52-week low ($22.50).

• Volume Confirmation:

  • Recent trading volume has been strong, supporting the upward price movement.

High Growth Fundamentals

Beyond technicals, CRDO exhibits explosive growth metrics that appeal to momentum investors:

• Earnings Growth:

  • EPS (TTM) grew 689% YoY, with recent quarterly EPS growth of 400%.
  • The company has beaten EPS estimates in 3 of the last 4 quarters by an average of 22.8%.

• Revenue Growth:

  • Revenue surged 179.7% YoY in the latest quarter, with full-year revenue up 126.3%.
  • Analysts have raised next-year EPS estimates by 47.9% and revenue forecasts by 32.5% over the past three months.

• Profit Margins Expanding:

  • Quarterly profit margins improved to 21.7%, up from 11.9% in the prior fiscal year.

Technical Outlook

According to ChartMill’s technical report, CRDO scores a perfect 10 on technical strength, supported by:

• Strong long-term and short-term uptrends.
• Recent breakout to new highs with rising volume.
• Leadership within the Semiconductors & Semiconductor Equipment sector (outperforming 97% of peers).

However, the setup rating is currently 3, suggesting the stock may need a consolidation period before offering an optimal entry point.

For a deeper technical breakdown, review the full ChartMill technical report.

Our High Growth Momentum + Trend Template screener identifies more stocks with similar growth and technical strength.

Disclaimer

This is not investing advice. The observations are based on current data, but investors should conduct their own analysis before making decisions.