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Strength Seen in Credo Technology Group Holding Ltd. (CRDO): Can Its 9.6% Jump Turn into More Strength?

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Credo Technology Group Holding Ltd. (CRDO - Free Report) shares rallied 9.6% in the last trading session to close at $11.98. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 32% gain over the past four weeks.

The price appreciation is likely due to the success of CREDO’s AEC Solutions which is gaining industry acceptance. The investors seem to be impressed by the company’s efforts to add more hyper scalers, 5G carriers and data center operators as their customers.

This company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -300%. Revenues are expected to be $31 million, down 17.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Credo Technology Group Holding Ltd., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CRDO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Credo Technology Group Holding Ltd. is part of the Zacks Technology Services industry. Skillsoft Corp. (SKIL - Free Report) , another stock in the same industry, closed the last trading session 7.9% lower at $1.52. SKIL has returned 31% in the past month.

For Skillsoft Corp., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.20. This represents a change of +4.8% from what the company reported a year ago. Skillsoft Corp. currently has a Zacks Rank of #3 (Hold).

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