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

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Wolfspeed (WOLF - Free Report) closed the most recent trading day at $40.97, moving +0.47% from the previous trading session. This change outpaced the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Coming into today, shares of the maker of energy-efficient lighting had lost 8.32% in the past month. In that same time, the Computer and Technology sector gained 3.73%, while the S&P 500 gained 2.08%.

Wolfspeed will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.64, down 1500% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $197.1 million, down 18.32% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$2.41 per share and revenue of $989.98 million, which would represent changes of -66.21% and +7.38%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Wolfspeed. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 8.48% lower. Wolfspeed is holding a Zacks Rank of #4 (Sell) right now.

The Semiconductor - Discretes industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 18% 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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