Latest news with #Credo
Yahoo
17 hours ago
- Business
- Yahoo
Is this S&P 500 stock a once-in-a-decade passive income opportunity?
The S&P 500 has recovered from its volatile start to the year and is within touching distance of its record highs. At the same time, some quality shares are trading at exceptionally low prices. One example is Johnson & Johnson (NYSE:JNJ). As a rule, I stay away from pharmaceutical stocks, but I'm considering making a rare exception for this one. Johnson & Johnson has recently divested its consumer products business. The company now generates around 66% of its revenues from pharmaceuticals and 33% from medical devices. The main reason I generally stay away from stocks like this is I don't feel like I can evaluate them accurately. I'm not a medical professional and that means I can't confidently evaluate drug pipelines. That makes it hard to work out which businesses have the best prospects. And in fairness to me, it's not always straightforward even for people who do have specialist expertise in this sector. Johnson & Johnson does have some competitive strengths in this area – most notably its scale and its exceptional balance sheet. But there's something else that stands out to me about the company. A key part of what makes Johnson & Johnson unique is its culture. And this is set out in the 'Credo' – a document, which states that the company's priorities are, in order: Doctors, patients, nurses, and users of its products Employees Communities Shareholders In other words, focus on putting customers first and doing the right thing and the returns will follow. This ethical outlook is a key part of what has allowed the business to survive and thrive over decades. A lot of businesses have codes of conduct or ethical frameworks. But there's evidence that Johnson & Johnson's Credo means its culture is more entrenched than it is at other companies. The firm's reaction to the 1982 Tylenol crisis is now a well-known case study in ethical leadership. And it doesn't take specialist medical knowledge to appreciate the significance of this. Right now, shares in Johnson & Johnson come with a dividend yield of around 3.25%. That doesn't exactly jump out as a passive income opportunity, but it's the highest it has been in the last 10 years. This is a sign investors are unusually pessimistic about a stock they normally hold in high regard. And a key reason for this is the situation in the US at the moment. The situation is still developing, but potential risks include slower drug approval processes and price controls. Neither of these would be good for companies like Johnson & Johnson. The risk is real, but this might be the kind of opportunity that comes around once in a decade. Given the company's long-term strengths, I think it's worth taking seriously. I think Johnson & Johnson's biggest unique strength is its culture. Even if I'm wrong, there's clearly a lot to like about a company that has more than 50 years of consecutive dividend increases. Most of the time, the stock market appreciates the quality of the business. But it's unusually cheap at the moment and on that basis, it's certainly one to consider right now. The post Is this S&P 500 stock a once-in-a-decade passive income opportunity? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
2 days ago
- Business
- Business Wire
Credo to Present at 2025 Mizuho Technology Conference
SAN JOSE, Calif.--(BUSINESS WIRE)--Credo Technology Group Holding Ltd (Credo) (NASDAQ: CRDO), an innovator in providing secure, high-speed connectivity solutions that deliver improved reliability and energy efficiency, today announced that Bill Brennan, President and CEO, and Dan Fleming, CFO, are scheduled to present at the following upcoming investor conference. Conference: 2025 Mizuho Technology Conference Time: 1:20 p.m. ET Location: New York City, New York The presentation will be webcast live on Credo's IR website at The webcast replay will be available as soon as possible following the event on Credo's IR website. About Credo Credo's mission is to advance high-speed connectivity solutions that deliver optimized performance, reliability, energy efficiency, and security for the next generation of AI driven applications, cloud computing, and hyperscale networks. Optimized for both optical and electrical applications, our solutions support port speeds up to 1.6Tb. At the core of our technology is our proprietary Serializer/Deserializer (SerDes) IP. Our diverse solutions portfolio includes system-level products such as Active Electrical Cables (AECs), a range of Integrated Circuits, including Retimers, Optical DSPs, SerDes chiplets, and SerDes IP Licensing. For more information, please visit Follow Credo on LinkedIn.
Yahoo
3 days ago
- Business
- Yahoo
Credo Stock Surges Over 17% on 800G Win, Hyperscaler Push
Credo Technology (NASDAQ:CRDO) jumped more than 17% after Needham hiked its price target to $85, citing huge hyperscaler wins and a diversifying customer roster that propelled Q4 results. Warning! GuruFocus has detected 3 Warning Signs with CRDO. The optical?component maker saw revenue jump 126% in fiscal 2025 and now targets an 85% leap to over $800 million in fiscal 2026. Needham's N. Quinn Bolton notes Amazon (NASDAQ:AMZN) still accounts for 61% of sales (down from 86% last quarter), while Microsoft (NASDAQ:MSFT) and xAI contributions surged to 12% and 11%, respectivelyup from negligible levels in Q3. Management expects to keep three-to-four customers above 10% of revenue through FY26, with Meta (NASDAQ:META) and Oracle (NYSE:ORCL) slated to join the hyperscaler list. Credo also announced an 800G optical DSP design win for a major hyperscalerpotentially its biggest everthat should ramp this year. The company showcased its new 3nm, 200G-per-lane DSP capable of 1.6Tb/s speeds with leading signal integrity and power efficiency, signaling continued investment in next-gen data-center connectivity. Investors should care because Credo's shift from a single?customer cadence toward a balanced hyperscaler base reduces concentration risk and underpins a steep growth trajectory as demand for 800G links explodes. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Why Credo Technology Stock Exploded Higher Today
Credo Technology nearly tripled its sales last quarter, crushing earnings forecasts. Sales are growing, and costs are growing slower, yielding improved profit margins. 10 stocks we like better than Credo Technology Group › Shares of San Jose-based high-speed connectivity solutions provider Credo Technology Group (NASDAQ: CRDO) stock jumped 24.5% through 10:10 a.m. ET this morning after beating analyst forecasts last night. Heading into its fiscal fourth quarter of 2025, analysts forecast Credo would earn only $0.27 per share on less than $160 million in sales. In fact, Credo reported last night, it earned $0.35 per share, adjusted for one-time items, and sales were $170 million, for the period ended May 3. Not all the news is good. Sales surged nearly 180% year over year, which is great. Earnings as calculated according to generally accepted accounting principles (GAAP) were up only 25%, however, despite the impressive "adjusted" earnings beat. Actual GAAP profits for the quarter were only $0.20 -- not $0.35. Still, CEO Bill Brennan said he was "proud" of the company's achievements in 2025. For the full year, sales grew 126%, while cost of revenue grew only 109%, improving the company's gross profit margin. And operating costs grew only 57%, improving the company's operating profit margin even more. For both the quarter and the year, Credo flipped from operating and net losses to operating and net profits. GAAP profit for the year was $0.29 per share. So no wonder investors are pleased. And it didn't hurt that Credo guided investors to expect further sales growth (about $190 million, triple last year's Q1 sales) and a further improved gross margin (about 64.5%) in fiscal Q1 2026, currently underway. At a valuation of more than 260 times trailing earnings, Credo stock is anything but a cheap stock. But if it keeps growing sales at its current pace, and expanding profit margins besides, this stock could still be a good growth stock -- and a buy. Before you buy stock in Credo Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Credo Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Credo Technology Stock Exploded Higher Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
CRDO Tanks 33% in 3 Months: Should You Hold the Stock or Make an Exit?
Credo Technology Group Holding Ltd CRDO stock has slipped 33.3% over the past three months, significantly more than the Electronic-Semiconductors industry's decline of 16.4%. The broader Computer and Technology sector and S&P 500 Composite have registered declines of 11.5% and 7.8%, respectively, over the same time frame. The markets since April have been affected by evolving U.S. trade policy and diminishing macroeconomic visibility. Image Source: Zacks Investment Research CRDO gained 6.1% yesterday and closed trading at $51.39, but the stock is down 41% below its 52-week high of $86.69. This is likely to spook investors as they contemplate how to strategize their investment now. The natural question is: Should you stay invested or exit now? Let's weigh the pros and cons of this AI stock and see whether it is worth staying invested or not. Credo is a provider of high-performance serial connectivity solutions for the data infrastructure market. Amid exponential data growth and rapid AI proliferation, market demand for faster and energy-efficient connectivity solutions continues to increase. This bodes well for Credo. One of Credo's key strengths lies in its Active Electrical Cables (AEC) product line, which posted triple-digit sequential growth in the third quarter of fiscal 2025. The growth is driven by its increasing adoption in the data center market. The demand for AECs is increasing as ZeroFlap AECs offer more than 100 times improved reliability than laser-based optical solutions. This made AECs an increasingly attractive option for data center applications, contributing to the new expansion of AEC usage and further solidifying Credo Technology's position in the market. Image Source: Zacks Investment Research Credo is also focused on expanding its product portfolio to include a portfolio of PCIe solutions, which will address the growing demand for AI scale-out and scale-up networks. The company expects the PCIe products to considerably expand its total addressable market. This expansion into PCIe connectivity further solidifies the company's competitive positioning in the high-performance computing and AI markets. Momentum in the optical business, particularly for Optical Digital Signal Processors (DSPs), bodes well. In April 2025, CRDO unveiled the innovative Lark Optical DSP family, engineered to transform 800G optical transceivers. The Lark portfolio has two distinct optical DSP products. The Lark 800 is a high-performance, low-power DSP optimized for fully retimed 800G transceivers, designed to meet the stringent power and cooling requirements of hyperscale AI data centers. The Lark 850 is an ultra-low-power 800G Linear Receive Optics DSP, consuming under 10W, making it an ideal solution for AI-driven data environments where power efficiency is exceptional. CRDO's PCIe retimers and Ethernet retimers saw strong customer interest, especially for scale-out networks in AI servers. This growing demand underscores the increasing importance of high-performance solutions in the rapidly expanding AI server market. PCIe retimer demand is expected to exceed $1 billion by 2027, positioning Credo Technology for significant future revenue growth. For the fourth quarter of fiscal 2025, CRDO expects revenues between $155 million and $165 million. The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $160 million, suggesting growth of 163.2% from the year-ago quarter's reported figure. For the third quarter of fiscal 2025, CRDO reported $135 million in revenues, up 87% sequentially and 154% year over year, beating the Zacks Consensus Estimate by 12.5%. This surge was mainly driven by its largest hyperscale customer, which significantly scaled the production of AI platforms, reflecting the growing demand for AI-powered connectivity solutions. Despite Credo's strong performance and innovative solutions, several challenges pose headwinds to its prospects. CRDO's business is heavily tilted toward AI-related infrastructure and the hyperscale cloud market spending. While these segments are currently experiencing high growth, they are also cyclically dependent on AI capex spending, which could decelerate after initial buildouts. Credo's non-GAAP operating expenses in the fiscal third quarter surged 16% sequentially to $43.8 million, primarily due to higher headcount. Increasing costs could become a problem if the revenue growth does not keep pace. In the last reported quarter, 86% of revenue came from a single end customer. This intense customer concentration risk can impact revenues as the company becomes highly vulnerable to the loss of business from those clients. To diversify its base, CRDO added that it has two additional hyperscalers in qualification and has already achieved volume production with three others. The company expects to ramp up with these two hyperscalers in fiscal 2026. These factors, along with increasing market competition and macroeconomic uncertainties, may impact CRDO's growth trajectory. Credo competes with semiconductor giants like Broadcom Inc. AVGO and Marvell Technology, Inc. MRVL. Analysts also seem wary as reflected in unchanged revisions for earnings estimates in the past 60 days. Image Source: Zacks Investment Research CRDO's 33.3% decline is also much steeper than peers like Broadcom and Cirrus Logic, Inc. CRUS. Broadcom and Cirrus Logic have declined 11.6% and 6.5%, respectively. However, Marvell's stock has declined 48.9% in the same time frame. Credo Technology stock is also not so cheap, as its Value Style Score of F suggests a stretched valuation at this moment. In terms of the forward 12-month Price/Sales ratio, CRDO is trading at 12.92, higher than the Electronic-Semiconductors sector's multiple of 6.97. Image Source: Zacks Investment Research In comparison, Broadcom trades at a forward 12-month P/S multiple of 14.46, while Cirrus Logic and Marvell Technology are trading at a multiple of 2.76 and 5.71, respectively. While Credo appears well-positioned in the AI-driven connectivity space, there are several factors that could exert downward pressure on the stock. Key concerns include customer concentration, competitive pressures, stretched valuation, and overreliance on AI spending. CRDO currently carries a Zacks Rank #3 (Hold), which indicates that investors should wait for a better entry point. However, existing investors can hold the stock as its growth prospects remain intact. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
