Let’s take a quick look at where covering equity analysts see Cree, Inc. (NASDAQ:CREE) going in the future. Analysts polled by Thomson Reuters have a current consensus target on company stock of $23.80. It is important to mention that target price projections can be very different between analysts. Covering analysts use their acquired knowledge and expertise to help create their best calculation of where they think the stock may be moving in the future.
Wall Street analysts have the ability to use various metrics to help calculate target projections. A commonly used metric is a company’s P/E Ratio. This calculation stems from dividing the current share price by the projected earnings per share. At the time of this writing, Cree, Inc. has a price to earnings ratio of 718.29. Investors may also evaluate a company’s PEG or price to earnings growth ratio. The PEG ratio represents the ratio of the price to earnings to the anticipated future growth rate of the company. If a company has a PEG Ratio below one, it may be viewed as undervalued. If a company has a PEG Ratio above one, it may indicate that the company is overvalued. A PEG Ratio near one may be seen as fair value. The stock presently has a PEG Ratio of -5.01.
Taking a brief view of stock performance, we see that company shares are currently trading $1.49 off the 50-day moving average of $23.65 and $0.32 off of the 200-day moving average of $24.82. The stock has been recently recorded -23.63% off of the 52-week high of 32.92 and +21.16% away from the 52-week low of 20.75. Tracking the stock price relative to moving averages and highs and lows for the year may help evaluate the future value of the stock.