IPO Stock Of The Week: Cardinal Surges Past First Buy Point, Triggers Rare Signal

IPO Stock Of The Week Cardinal Infrastructure (CDNL) surged this past week, breaking out past its first buy point after its initial public offering. Cardinal stock is in Investor’s Business Daily’s IPO Leaders screen.

In addition, Cardinal stock triggered the eight-week hold rule during Friday’s bullish advance. That rule allows investors to hold a stock for at least eight weeks if it gains 20% or more within one to three weeks of a proper breakout. This technique helps investors avoid selling potential big winners too early due to normal volatility, allowing them to capture larger, long-term gains.

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Late Wednesday, Cardinal said its 2025 revenue rose to an estimated $452.3 million-$459.7 million, about a 45% increase at the midpoint on a year-over-year basis. Full-year adjusted EBITDA margin was 17.8% to 18%. The provider of mostly residential construction site preparation services said its backlog grew 33% at the midpoint of its $678.3 million-$685.7 million estimate.

For 2026, the company forecast revenue of $664.9 million to $678.3 million and adjusted EBITDA margin of at least 20%. Analysts had estimated $618.4 million in sales, according to FactSet.

In response, shares soared more than 31% Thursday.

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IPO Stock Breaks Out Past First Buy Point

On Dec. 10, Cardinal went public, selling 11.5 million shares at $21 apiece, within the marketed range of $20 to $22 per share. The IPO valued Cardinal at about $768.74 million.

This past week, Cardinal stock broke out past a 28.45 cup-with-handle entry in heavy volume, quickly moving out of the buying range that ran up to 29.87.

Bullishly, the stock’s relative strength line hit a new high, triggering the RS Line Blue Dot signal, according to its IBD MarketSurge chart. That highlights its strong outperformance amid the persistent equity market volatility in recent weeks. The RS line measures a stock’s price performance vs. the S&P 500.

In the IBD Stock Checkup, Cardinal stock shows a solid IBD Composite Rating of 94 out of 99. That’s another sign of strength for the IPO stock.

**As Wall Street Wavers, What’s An Investor To Do? Start Here

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Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on the Dow Jones Industrial Average and the stock market today.

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