CRDO Stock Surges 21% With A 5-day Winning Spree On Stifel & Needham Upgrades
Credo Technology (CRDO) stock hit day 5-day winning streak, with cumulative gains over this period amounting to a 21%. The company market cap has surged by about $5.0 Bil over the last 5 days, and currently stands at $28 Bil.
The stock has YTD (year-to-date) return of 12.2% compared to 1.7% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Stifel Reiterates Buy Rating
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- Reiterated ‘Buy’ Rating
- Price Target of $225
- Impact: Upward Price Movement, Increased Investor Confidence
[2] Needham ‘Conviction List’ Addition
- Added to ‘Conviction List’
- Named ‘Top Pick for 2026’
- Impact: Accelerated Stock Momentum, Heightened Institutional Buying
Opportunity or Trap?
Below is our take on valuation.
There is not much to fear in CRDO stock given its overall Very Strong operating performance and financial condition. Hence, despite its Very High valuation, the stock appears Attractive but Volatile (For details, see Buy or Sell CRDO).
But here is the real interesting point.
You are reading about this 21% move after it happened. The market has already priced in the news. To catch the next winner before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has flagged 5 new opportunities that haven not surged yet.
Returns vs S&P 500
The following table summarizes the return for CRDO stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | CRDO | S&P 500 |
|---|---|---|
| 1D | 3.4% | -0.2% |
| 5D (Current Streak) | 21.4% | 0.3% |
| 1M (21D) | 4.5% | 0.9% |
| 3M (63D) | 7.7% | 4.6% |
| YTD 2026 | 12.2% | 1.7% |
| 2025 | 114.1% | 16.4% |
| 2024 | 245.2% | 23.3% |
| 2023 | 46.3% | 24.2% |
However, big gains can follow sharp reversals – but how has CRDO behaved after prior drops? See CRDO Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 91 S&P constituents with 3 days or more of consecutive gains and 75 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 26 | 62 |
| 4D | 54 | 7 |
| 5D | 6 | 6 |
| 6D | 3 | 0 |
| 7D or more | 2 | 0 |
| Total >=3 D | 91 | 75 |
Key Financials for Credo Technology (CRDO)
Last 2 Fiscal Years:
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenues | $193.0 Mil | $436.8 Mil |
| Operating Income | $-36.3 Mil | $38.0 Mil |
| Net Income | $-28.4 Mil | $52.2 Mil |
Last 2 Fiscal Quarters:
| Metric | 2026 FQ1 | 2026 FQ2 |
|---|---|---|
| Revenues | $223.1 Mil | $268.0 Mil |
| Operating Income | $60.7 Mil | $78.8 Mil |
| Net Income | $63.4 Mil | $82.6 Mil |
While CRDO stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.