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Strength Seen in Wolfspeed (WOLF): Can Its 20.8% Jump Turn into More Strength?

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Wolfspeed (WOLF - Free Report) shares ended the last trading session 20.8% higher at $11.48. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18% gain over the past four weeks.

Wolfspeed is benefiting from its transformation into a pure-play silicon carbide provider through portfolio optimization initiatives that concluded with the sale of its RF business.

This maker of energy-efficient lighting is expected to post quarterly loss of $0.95 per share in its upcoming report, which represents a year-over-year change of -79.3%. Revenues are expected to be $200.06 million, up 1.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Wolfspeed, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on WOLF going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Wolfspeed is a member of the Zacks Semiconductor - Discretes industry. One other stock in the same industry, Vishay Intertechnology (VSH - Free Report) , finished the last trading session 2.6% higher at $18.21. VSH has returned -1.4% over the past month.

For Vishay, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.15. This represents a change of -75% from what the company reported a year ago. Vishay currently has a Zacks Rank of #3 (Hold).


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