Cree (CREE) Outpaces Stock Market Gains: What You Should Know
Cree (CREE) closed at $66.43 in the latest trading session, marking a +1.44% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.3%.
Heading into today, shares of the maker of energy-efficient lighting had gained 15.04% over the past month, outpacing the Computer and Technology sector's gain of 3.73% and the S&P 500's gain of 3.08% in that time.
Wall Street will be looking for positivity from CREE as it approaches its next earnings report date. This is expected to be May 1, 2019. In that report, analysts expect CREE to post earnings of $0.16 per share. This would mark year-over-year growth of 300%. 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.
Any recent changes to analyst estimates for CREE should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. The Zacks Consensus EPS estimate has moved 3.4% higher within the past month. CREE is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that CREE has a Forward P/E ratio of 83.78 right now. For comparison, its industry has an average Forward P/E of 14.96, which means CREE is trading at a premium to the group.
It is also worth noting that CREE currently has a PEG ratio of 4.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - Discretes stocks are, on average, holding a PEG ratio of 1.02 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 25, which puts it in the top 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.