#6 - Cree (NASDAQ:CREE)
Cree (NASDAQ: CREE) – Shares of Cree’s stock have risen 113 percent in the last year. The manufacturer of high-efficiency LED lighting solutions is a leader in this still emerging market. Don’t just think light bulbs, Cree provides the technology that businesses use for large-scale lighting solutions. This market shows plenty of room for growth, but like other stocks in this grouping, the rapid growth of Cree’s stock is creating a valuation imbalance. In its most recent reporting period, the company posted $355.96 million in revenue, which beat analysts’ forecasts by over $8.5 million. But the company is priced at 78 times next year’s expected earnings, and two other metrics are cause for concern. Their Return on Equity (ROE) and Return on Assets (ROA) are both negative numbers at -11.5% and -9.5% respectively. Both numbers suggest that their costs outweigh their profits and a net loss for the business. In the last year, the stock has not dropped far from its high while moving significantly off its low; this suggests that the time may be right for a correction.
About Cree
Cree, Inc is an innovator of Wolfspeed power and radio frequency (RF) semiconductors. Its Wolfspeed product families include silicon carbide materials, power-switching devices and RF devices targeted for applications such as electric vehicles, fast charging inverters, power supplies, telecom and military and aerospace.
Read More - Current Price
- $8.44
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
