Cree is a Zacks Rank #1 (Strong Buy) and sports the divergence that I love to see in the Zacks Style Scores. I see an A for Growth and a D for value and that tells me right away that I am on the right path. My focus is on aggressive growth, and I know that growth investors are looking for the opposite of what value investors are looking for. When I see that divergence, I know I found what I am looking for.
Today, CREE is the Bull of the Day. Let's take a look at why I like this stock right here.
First off, I see that it is in the chip space and while I normally say that chips are for dips -- right now they look like a tasty treat. The chip names are likely to move significantly higher when a China deal is announced due to the relationship that so many names have with that region and country specifically.
Secondly, a big buyer just put some cards on the table. Artisian Partners filed a 13G with the SEC stating that they control 8.1M shares. That was just announced the other day... and it follows an early January filing that saw Vanguard announced a 10.4M share position.
When I see big buyers of size on a stock with a great Zacks Rank, I know it is worth a much deeper look.
Earnings Estimates
When a stock is a Zacks Rank #1 (Strong Buy) then we know the estimates are moving higher. That is the key part of the Zacks Rank.
I see the current quarter move higher by 2 cents, and the full year (fiscal 2019) has moved from $0.73 to $0.78.
The Zacks Consensus Estimate for fiscal 2020 has remained at $1.27 over the last 90 days.
Valuation
The forward PE of 66x is a little rich, but when you look at the other metrics it doesn't look that bad. A see a 2.4x price to book multiple, which is pretty pretty good for a stock with a 12% topline growth rate. I also see a 3.4x price to sales multiple which is a little high but still within an acceptable range.
Chart
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Cree is a Zacks Rank #1 (Strong Buy) and sports the divergence that I love to see in the Zacks Style Scores. I see an A for Growth and a D for value and that tells me right away that I am on the right path. My focus is on aggressive growth, and I know that growth investors are looking for the opposite of what value investors are looking for. When I see that divergence, I know I found what I am looking for.
Today, CREE is the Bull of the Day. Let's take a look at why I like this stock right here.
First off, I see that it is in the chip space and while I normally say that chips are for dips -- right now they look like a tasty treat. The chip names are likely to move significantly higher when a China deal is announced due to the relationship that so many names have with that region and country specifically.
Secondly, a big buyer just put some cards on the table. Artisian Partners filed a 13G with the SEC stating that they control 8.1M shares. That was just announced the other day... and it follows an early January filing that saw Vanguard announced a 10.4M share position.
When I see big buyers of size on a stock with a great Zacks Rank, I know it is worth a much deeper look.
Earnings Estimates
When a stock is a Zacks Rank #1 (Strong Buy) then we know the estimates are moving higher. That is the key part of the Zacks Rank.
I see the current quarter move higher by 2 cents, and the full year (fiscal 2019) has moved from $0.73 to $0.78.
The Zacks Consensus Estimate for fiscal 2020 has remained at $1.27 over the last 90 days.
Valuation
The forward PE of 66x is a little rich, but when you look at the other metrics it doesn't look that bad. A see a 2.4x price to book multiple, which is pretty pretty good for a stock with a 12% topline growth rate. I also see a 3.4x price to sales multiple which is a little high but still within an acceptable range.
Chart
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>