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Credo Technology Group Holding Ltd. (CRDO) Soars 8.3%: Is Further Upside Left in the Stock?

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Credo Technology Group Holding Ltd. (CRDO - Free Report) shares ended the last trading session 8.3% higher at $20.78. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.6% loss over the past four weeks.

The surge in price can be attributed to the company's projected growth in revenues and gross margin, as outlined in its guidance. Additionally, the company's actual performance, aligning with its projections, serves as another factor driving this upward trend in stock price.

This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -40%. Revenues are expected to be $52 million, down 4.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with 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 #2 (Buy). 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. CoreCard Corporation (CCRD - Free Report) , another stock in the same industry, closed the last trading session 1.5% lower at $11.78. CCRD has returned -16.6% in the past month.

For CoreCard Corporation, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. This represents a change of -91.7% from what the company reported a year ago. CoreCard Corporation currently has a Zacks Rank of #3 (Hold).


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