Cree (CREE) closed at $55.64 in the latest trading session, marking a -0.32% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.46%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq lost 0.63%.
Heading into today, shares of the maker of energy-efficient lighting had gained 3.81% over the past month, outpacing the Computer and Technology sector's gain of 2.74% and the S&P 500's gain of 1.08% in that time.
Investors will be hoping for strength from CREE as it approaches its next earnings release. The company is expected to report EPS of $0.16, up 300% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $274.74 million, down 22.82% from the year-ago period.
CREE's full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $1.38 billion. These results would represent year-over-year changes of +310.53% and -7.29%, respectively.
Investors might also notice recent changes to analyst estimates for CREE. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.4% higher. CREE is currently a Zacks Rank #2 (Buy).
Investors should also note CREE's current valuation metrics, including its Forward P/E ratio of 71.41. For comparison, its industry has an average Forward P/E of 11.4, which means CREE is trading at a premium to the group.
Also, we should mention that CREE has a PEG ratio of 3.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - Discretes stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.
The Semiconductor - Discretes industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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