Why Investing In Wolfspeed Inc. (NYSE:WOLF) Now May Be A Good Investment

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Wolfspeed Inc. (NYSE:WOLF) traded at $106.77 at close of the session on Monday, 01/10/22, made a downward move of -2.02% on its previous day’s price.

Looking at the stock we see that its previous close was $108.97 and the beta (5Y monthly) reads 1.57 with the day’s price range being $100.67 – $106.89. In terms of its 52-week price range, WOLF has a high of $142.33 and a low of $75.06. The company’s stock has lost about -9.10% over that past 30 days.

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Wolfspeed Inc. has a market cap of $12.87 billion and is expected to release its quarterly earnings report on Jan 25, 2022 – Jan 31, 2022. Estimates by analysts give the company expected earnings per share (EPS) of -$0.18, with the EPS growth for the year raised at -$0.69 for 2022 and $0.09 for next year. These figures represent 25.80% and 113.00% growth in EPS for the two years respectively.

Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $169.3 million, with a low of $165 million and a high of $170.03 million. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2022 is expected to hit $709.34 million, or 35.00% up from figures reported last year.

There have been no upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the WOLF stock, short term indicators assign the stock an average of Hold, while medium term indicators assign it an average of 50% Buy. Long term indicators on average place the stock in the category of 100% Buy.

Based on estimates by 17 analysts, where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 8 have rated the Wolfspeed Inc. (WOLF) stock as a Hold, while 6 rate it as a Buy. 0 analyst(s) rate it as overweight while 1 of them rated it as underweight, whereas 2 suggest the stock as a Sell. The stock has an overall rating of Hold and investors could take advantage and scoop up stock of the company.

Looking further, we note the current price level is -4.12% off its SMA20 and -12.03% from its 50-day simple moving average. The RSI (14) is pointing at 41.76 while the volatility over the past week is 6.97% and jumps to 5.46% over the past one month. The beta value is 1.52, while the average true range (ATR) is currently pointing at 6.55. The average price target for the stock over the next 12 months is $125.40, with the estimates having a low of $70.00 and a high of $160.00. These price ends are 34.44% and -49.85% off the current price level respectively, although investors could be excited at the prospect of a -17.07% if the WOLF share price touches on the median price of $125.00.

Let’s briefly compare Wolfspeed Inc. (WOLF) stock to its peers. We find that current price change of -2.02% and -9.03% over the past 12 months for WOLF competes that of NVIDIA Corporation (NVDA), which has seen its stock price rise 0.56% in the last trading session and was 101.15% over the last one year. Another of its peers Broadcom Inc. (AVGO) has gained 0.32% previous session, and was 39.35% up over the past year, while QUALCOMM Incorporated (QCOM) was also down -0.40% in the last session, while its price remained in the green at 15.10% over the same period. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial were at -0.14% and -0.45%, respectively, at close of the trading.

Coming back to Wolfspeed Inc. (NYSE:WOLF), we note that the average 3-month trading volume was 1.62 million, while that of the preceding 10-day period stands at 1.18 million. Current shares outstanding are 115.92 million.

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The insiders hold 0.80% of the company’s shares. The data shows that short shares as of Dec 14, 2021, stood at 10.55 million at a short ratio of 6.29. This represents a 9.08% short interest in shares outstanding on Dec 14, 2021. Shares short fall in December from the previous month at 11.21 million. Investors should be excited about this stock as its upside potential is great, with current price pushing the stock -4.47% down in year-to-date price movement.