In the latest trading session, Wolfspeed (WOLF) closed at $103.36, marking a -0.83% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.51%. Elsewhere, the Dow lost 1.71%, while the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the maker of energy-efficient lighting had lost 5.99% over the past month, outpacing the Computer and Technology sector's loss of 11.76% and the S&P 500's loss of 9.52% in that time.
Wolfspeed will be looking to display strength as it nears its next earnings release. On that day, Wolfspeed is projected to report earnings of -$0.05 per share, which would represent year-over-year growth of 76.19%. Our most recent consensus estimate is calling for quarterly revenue of $239.76 million, up 53.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.13 per share and revenue of $1.07 billion. These totals would mark changes of +126% and +43.14%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Wolfspeed. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.36% higher within the past month. Wolfspeed currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Wolfspeed is currently trading at a Forward P/E ratio of 810.68. This valuation marks a premium compared to its industry's average Forward P/E of 10.2.
The Semiconductor - Discretes industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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