Hot Picks

AI-vetted picks: crashed companies whose fundamentals still hold up.

Earlier picks 3

Everything the screener has flagged before, most recent first.

CRDO

👀 WATCH detected 2026-09-08 Fundamentals91/100

~Watch: Watch, not buy yet — growth is still real but margins are cooling and the stock was priced for perfection.

Fell -29.0% in 7 trading day(s) — now $170.57

I bought this

Full analysis & scorecard›

What's going on

Credo actually beat revenue and earnings estimates for Q1 FY2027 (revenue +115% y/y), but the stock cratered because gross margins slipped and guidance for its optical products came in below what an extremely optimistic market wanted.

The case for it

The company is not broken: cash is piling up ($764M), debt is almost nonexistent, and revenue is still doubling annually thanks to AI data-center demand for its high-speed connectivity chips. The drop looks like a "sell the news" reaction to a stock that ran up 44% before earnings and was trading at a nosebleed valuation, so even a good quarter with slightly softer margins was enough to trigger profit-taking.

What could go wrong

Gross margins fell from 68.2% to 64.5% in one quarter, and if that trend continues it means the company is winning growth by accepting worse pricing — exactly the kind of thing that turns a "beat" into a real earnings problem next quarter; also, even after the crash, the trailing P/E is still around 60-80x, so there is little room for further disappointment.

Fwd P/E 17.7Op margin 25.2%Rev growth 114.7%Debt/equity 1.0%Analyst upside 65.0%

How this scored 91/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 33.8%

✅ Generates cash Free cash flow $248M

✅ Not drowning in debt Debt/equity 1.0% (limit 200%)

✅ Can pay its bills Current ratio 7.4 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 25/25

Operating margin 25.2% 9/9

Net profit margin 33.8% 8/8

Return on equity 30.7% 8/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 114.7% 9/9

Earnings growth 97.1% 8/8

Expected profit change 237.8% 8/8

Value Is it cheap right now? 16/25

Forward P/E 17.7 7/10

PEG ratio unknown 2/8

Analyst target upside 65.0% 7/7

Balance sheet Will it survive? 25/25

Debt / equity 1.0% 10/10

Current ratio 7.4 8/8

Free cash flow $248M 7/7

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TER

👀 WATCH detected 2026-09-01 Fundamentals86/100

~Watch: Interesting AI-test-equipment leader with real earnings growth, but it's still pricey after a huge run-up, so the drop is a valuation reset, not a bargain.

Fell -21.1% in 11 trading day(s) — now $349.83

I bought this

Full analysis & scorecard›

What's going on

The drop is driven by a Wall Street valuation downgrade (Baird cut to Neutral citing "lack of near-term catalysts and valuation concerns") plus a broader profit-taking wave across semiconductor test-equipment stocks after the group's huge AI-driven year-to-date gains, and a sector-wide memory-glut panic — not any company-specific bad news; Teradyne's own Q2 results beat estimates and guidance was actually raised.

The case for it

Teradyne genuinely sells the equipment used to test AI chips, and its Q2 2026 sales rose about 104% year-over-year with raised full-year guidance, so the underlying business is not broken. The stock fell mainly because analysts think the very high price (48x trailing earnings) already assumes years of AI spending growth, and any pause in that narrative (a downgrade, a memory-market scare) causes an outsized swing.

What could go wrong

Even after the pullback the stock still trades around 30x forward earnings and sits ~28% below the average analyst target mostly because targets were set during peak AI euphoria; if AI/hyperscaler capex growth slows or "lumpy," customer-concentrated order patterns disappoint again (as happened after Q1), the stock could fall much further since so much future growth is already priced in.

Fwd P/E 30.0Op margin 33.2%Rev growth 103.9%Debt/equity 2.9%Analyst upside 27.6%

How this scored 86/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 25.8%

✅ Generates cash Free cash flow $437M

✅ Not drowning in debt Debt/equity 2.9% (limit 200%)

✅ Can pay its bills Current ratio 2.1 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 25/25

Operating margin 33.2% 9/9

Net profit margin 25.8% 8/8

Return on equity 36.5% 8/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 103.9% 9/9

Earnings growth 385.8% 8/8

Expected profit change 60.1% 8/8

Value Is it cheap right now? 13/25

Forward P/E 30.0 3/10

PEG ratio 0.9 7/8

Analyst target upside 27.6% 3/7

Balance sheet Will it survive? 23/25

Debt / equity 2.9% 10/10

Current ratio 2.1 6/8

Free cash flow $437M 7/7

source · source · source · source · source

SEZL

👀 WATCH detected 2026-08-17 Fundamentals91/100

~Watch: Business is still growing fast and profitable, but it crashed because growth is decelerating from extreme highs — priced for perfection risk remains.

Fell -27.8% in 7 trading day(s) — now $128.96

I bought this

Full analysis & scorecard›

What's going on

Sezzle beat Q2 2026 earnings and raised full-year guidance, but the stock cratered because management guided second-half revenue growth to slow to roughly 30% from 51.7%, disappointing a stock that had run up hard and was already drawing overvaluation downgrades.

The case for it

The company itself did not break — revenue, profit margins, and cash flow all came in strong and better than Wall Street expected, and this looks like a "growth normalizing from unsustainable pace" story rather than a business unraveling. Insider stock sales flagged in the press were routine tax-withholding on vesting RSUs, not a warning sign of executives dumping shares out of fear.</thesis> <parameter name="risks">The stock was trading at a very rich valuation (P/E over 28, near all-time highs) purely on the assumption growth would stay above 50%, so even a "good" slowdown to 30% growth is a real de-rating, not just noise, and it's still 30% below analyst targets set before this news, meaning those targets may come down too.

What could go wrong

Fwd P/E 19.4Op margin 57.2%Rev growth 51.7%Debt/equity 52.4%Analyst upside 30.3%

How this scored 91/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 30.3%

✅ Generates cash Free cash flow $101M

✅ Not drowning in debt Debt/equity 52.4% — exempt (banks run on leverage by design)

✅ Can pay its bills Exempt (financials)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 25/25

Operating margin 57.2% 9/9

Net profit margin 30.3% 8/8

Return on equity 88.9% 8/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 51.7% 9/9

Earnings growth 50.0% 8/8

Expected profit change 45.4% 8/8

Value Is it cheap right now? 18/25

Forward P/E 19.4 6/10

PEG ratio 0.1 8/8

Analyst target upside 30.3% 4/7

Balance sheet Will it survive? 23/25

Debt / equity 52.4% 8/10

Current ratio 4.0 8/8

Free cash flow $101M 7/7

source · source · source · source

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