This Data Center Stock Is Up 330% in the Past Year

• Credo Technology (CRDO) hit a new 52-week high on July 31.
• The stock shows strong technical momentum and has a 100% “Buy” signal via Barchart.
• Shares are up nearly 330% over the past year.
• Despite positive momentum, CRDO is highly volatile and speculative, requiring disciplined risk management and stop-loss strategies.

Today’s Featured Stock

Valued at $19.91 billion, Credo Technology (CRDO) is a provider of high-performance serial connectivity solutions for the hyperscale data center, 5G carrier, enterprise networking, artificial intelligence, and high-performance computing markets.  

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. CRDO checks those boxes. Since the Trend Seeker signaled a buy on July 23, the stock has gained 13.35%.

More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.

 

CRDO Price vs. Daily Moving Averages:

www.barchart.com

Barchart Technical Indicators for Credo Technology:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Credo Technology shares hit a new all-time high on July 31, touching $118.95 in intraday trading.

• CRDO has a 100% technical “Buy” signal.
• The stock recently traded at $111.55, above its 50-day moving average of $86.31.
• Credo Technology has a Weighted Alpha of +288.03.
• The stock has gained 329.70% over the past year.
• CRDO has its Trend Seeker “Buy” signal intact.
• Credo Technology is trading above its 20, 50 and 100-day moving averages.
• The stock made 13 new highs and gained 20.48% in the last month.
• Relative Strength Index is at 60.87%.
• The technical support level is $108.64.

Don’t Forget the Fundamentals:

• $19.1 billion market capitalization.
• Trailing price-earnings ratio of 429.67x.
• Revenue is projected to grow 86.32% this year and another 23.15% next year.
• Earnings are estimated to increase 120.63% this year and an additional 26.65% next year.

Analyst and Investor Sentiment on Credo Technology:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are bullish, but some major advisory sites are split.

• The Wall Street analysts tracked by Barchart issued nine “Strong Buy,” and one “Moderate Buy” opinion on the stock.
• Value Line gives the company its above-average rating.
• CFRA’s Market Scope rates the stock a “Hold.”
• Morningstar thinks the stock is 59% overvalued.
• 30,160 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Credo Technology currently has momentum and is hitting new highs. It has positive sentiment from Wall Street, plus analysts project double-digit increases in revenue and earnings.

I caution that CRDO is volatile and speculative — use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten 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. For more information please view the Barchart Disclosure Policy here.