Will CRDO Stock Rise After Earnings?
POLAND - 2025/02/19: In this photo illustration, the Credo Technology company logo is seen displayed ... More on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)
Credo Technology (NASDAQ:CRDO), a company specializing in electrical cable and interconnect products, is set to announce its earnings on Monday, June 2, 2025. For traders focused on events, historical data since 2022 indicates that the stock has nearly an equal probability of rising or declining following its earnings announcement. CRDO recorded a positive one-day return in 54% of cases after earnings releases over the past three years. In the instances of positive performance, the median one-day return was quite significant at 23.2%, with a maximum positive one-day return of 47.9%. This underscores the considerable volatility the stock undergoes around earnings announcements.
While the actual performance relative to analyst expectations and market forecasts will be crucial, recognizing these historical trends can provide an edge to event-driven traders. There are two primary strategies to consider:
Analysts expect Credo Technology to announce earnings of $0.27 per share on revenues of $159.59 million. This marks a notable increase compared to the same quarter last year, when the company reported earnings of $0.07 per share on sales of $60.78 million. From a fundamental perspective, Credo Technology currently has a market capitalization of $10 billion. In the past year, the company generated $328 million in revenue. It reported an operating loss of $3.8 million but achieved a net income of $5.1 million. Therefore, if you are seeking potential gains with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative — it has outperformed the S&P 500 and delivered returns exceeding 91% since its inception. Separately, see – What's Behind The 400% Rise In IONQ Stock?
View earnings reaction history of all stocks
Some insights on one-day (1D) post-earnings returns:
Additional data concerning observed 5-Day (5D) and 21-Day (21D) returns following earnings releases are summarized alongside the statistics in the table below.
CRDO 1D, 5D, and 21D Post Earnings Returns
A relatively lower risk strategy (though ineffective if the correlation is weak) involves understanding the correlation between short-term and medium-term returns after earnings, identifying a pair that demonstrates the highest correlation, and executing the corresponding trade. For instance, if 1D and 5D exhibit the strongest correlation, a trader can position themselves "long" for the next 5 days if the 1D post-earnings return is positive. Below is some correlation data derived from the 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and the subsequent 5D returns.
CRDO Correlation Between 1D, 5D and 21D Historical Returns
At times, the performance of peers can impact the stock reaction following earnings. In fact, the pricing may start to adjust before the earnings announcements are made. Below is historical data comparing the post-earnings performance of Credo Technology stock with the stock performance of peers that announced earnings just prior to Credo Technology. For an accurate comparison, peer stock returns also reflect post-earnings one-day (1D) returns.
CRDO Correlation With Peer Earnings
Discover more about Trefis RV strategy which has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000), generating strong returns for investors. Additionally, if you prefer upside with a more stable experience than investing in an individual stock like Credo Technology, consider the High Quality portfolio, which has outperformed the S&P and achieved >91% returns since its inception.
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