In the latest trading session, Wolfspeed (WOLF) closed at $120.13, marking a +0.65% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.71%. Meanwhile, the Dow lost 1.7%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Prior to today's trading, shares of the maker of energy-efficient lighting had gained 6.57% over the past month. This has outpaced the Computer and Technology sector's loss of 12.12% and the S&P 500's loss of 8.68% in that time.
Wall Street will be looking for positivity from Wolfspeed as it approaches its next earnings report date. In that report, analysts expect Wolfspeed to post earnings of -$0.05 per share. This would mark year-over-year growth of 76.19%. Meanwhile, our latest consensus estimate is calling for revenue of $239.76 million, up 53.1% from the prior-year quarter.
WOLF's full-year Zacks Consensus Estimates are calling for earnings of $0.13 per share and revenue of $1.07 billion. These results would represent year-over-year changes of +126% and +43.14%, respectively.
Investors might also notice recent changes to analyst estimates for Wolfspeed. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.69% higher. Wolfspeed currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Wolfspeed is currently trading at a Forward P/E ratio of 928.36. This valuation marks a premium compared to its industry's average Forward P/E of 11.43.
The Semiconductor - Discretes industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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