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Wolfspeed (WOLF) Stock Sinks As Market Gains: What You Should Know

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Wolfspeed (WOLF - Free Report) closed the latest trading day at $33.86, indicating a -1.91% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.02%.

Prior to today's trading, shares of the maker of energy-efficient lighting had lost 21.99% over the past month. This has lagged the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52% in that time.

The upcoming earnings release of Wolfspeed will be of great interest to investors. The company's earnings per share (EPS) are projected to be -$0.63, reflecting a 472.73% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $205.94 million, indicating a 4.7% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of -$2.37 per share and a revenue of $884.69 million, demonstrating changes of -63.45% and -4.04%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wolfspeed. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% lower. Wolfspeed currently has a Zacks Rank of #4 (Sell).

The Semiconductor - Discretes industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 250, finds itself in the bottom 1% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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