Cricut Joins Elite List Of Stocks With 95-Plus Composite Rating

Recent IPO Cricut’s stock is running hot out of the gate. The IBD SmartSelect Composite Rating for Cricut (CRCT) rose from 94 to 96 Wednesday.


The new score indicates the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.

South Jordan, Utah-based Cricut makes connected devices, accessories and materials that enable people to make do-it-yourself and craft goods. It went public in late March and closed at 17.80 its first day of trading. Its stock traded at 32.21 Wednesday afternoon, up about 4% for the day and nearly doubled in two months trading.

One weak spot is the company’s 70 EPS Rating, which tracks quarterly and annual earnings-per-share growth.  The rating reflects poor earnings in its pre-IPO growth stage. Look for that to improve to 80 or better to show it’s in the top 20% of all stocks.

Cricut reported a 267% earnings gain for Q1, its fourth straight quarter of triple-digit profit growth. Revenue grew 125% to $323.8 million, up from 114% in the prior report. The company has now posted rising growth in each of the last two quarters.

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Cricut earns the No. 1 rank among its peers in the Computer-Hardware/Peripherals industry group. Logitech International (LOGI) and Corsair Gaming Inc (CRSR) are also among the group’s highest-rated stocks.

Cricut is currently extended beyond a proper buy zone after clearing the entry in an IPO base. See if it can form a fresh base and break out in strong volume.


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