The High Growth Momentum + Trend Template screen finds stocks that match Mark Minervini's strict technical criteria while also having strong fundamental growth features. This two-part method mixes Minervini's trend-based approach with a look at companies with fast earnings and revenue growth, aiming for securities that may be set for continued strong performance.
Technical Strength Through Minervini's View
Credo Technology Group Holding Ltd (NASDAQ:CRDO) shows strong technical features that fit well with Minervini's Trend Template needs. The template focuses on stocks in clear uptrends across different time periods, which CRDO shows through several main points:
- Current price ($166.62) trading well above all major moving averages (50-day: $145.59, 150-day: $98.50, 200-day: $89.22)
- All moving averages moving upward with correct order (50-day > 150-day > 200-day)
- Price located 472% above its 52-week low of $29.09 while staying within 7% of its 52-week high of $179.13
- Strong relative strength ranking of 98.19, showing it does better than almost all other stocks
These technical points meet Minervini's main idea of trading with the main trend. The moving average setup confirms the stock is in a clear Stage 2 uptrend, while the nearness to new highs points to continued momentum. The high relative strength score matches Minervini's focus on market leadership, as stocks with the strongest price action often continue to lead.
Strong Fundamental Growth Factors
Besides technical strength, CRDO shows the kind of fundamental speed that Minervini notes as typical of possible high performers. The company's growth numbers show strong momentum:
- EPS growth of 643.75% over the trailing twelve months
- Quarterly EPS growth speeding up significantly (recent quarter: 1200%, previous: 400%, two quarters ago: 525%)
- Revenue growth of 175.81% over the past year with quarterly speed increase (273.57% recent quarter vs 179.73% previous)
- Four straight quarters of earnings and revenue surprises, averaging 32.04% above estimates
- Profit margin growth from 21.52% to 28.42% in the most recent quarter
These fundamental features align with Minervini's view that "big earnings attract big attention." The sequential speed increase in both earnings and revenue growth, together with growing profit margins, suggests the company has lasting competitive benefits and pricing ability. The repeated earnings surprises show the company is beating expectations, often a sign of institutional buying.
Market Situation and Risk Factors
While CRDO shows strong technical and fundamental features, the present market setting needs careful thought. The stock's recent price swings and high position compared to its moving averages suggest a chance for a pause. The technical analysis report notes that despite the perfect technical rating of 10, the setup quality scores only 3, reflecting the difficulty of finding good entry points after large gains.
The stock works in the Semiconductors & Semiconductor Equipment industry, where it does better than 91% of similar companies. This sector leadership is important, as Minervini notes that real market leaders often come from strong industry groups and show relative strength against both the general market and their direct rivals.
Technical Evaluation Summary
According to the detailed technical analysis, CRDO scores a perfect 10 out of 10 in ChartMill's technical rating system. The evaluation points to consistently good performance across both short and long-term periods, with the stock showing a steady upward path compared to the overall market. Key support levels are found between $139.08-$139.33 and at $150.56, while resistance appears near the recent high of $172.32. The full technical analysis gives more details on possible entry and exit situations.
View the complete technical analysis report for CRDO
For investors looking for more opportunities that meet these strict growth and technical standards, the High Growth Momentum + Trend Template screen regularly finds possible candidates. Explore current screening results to find other securities that mix good technical trends with strong fundamental growth features.
Disclaimer: This analysis is for informational and educational purposes only and does not constitute investment advice. All investments involve risk, and past performance is no guarantee of future results. Conduct your own research and consult with a qualified financial advisor before making any investment decisions.
