Valuing 2 Stocks Using Ratios and Multiples: Masco Corporation (MAS), Cree Inc. (CREE)

You should consider shares of Masco Corporation (NYSE:MAS) and Cree Inc. (NASDAQ:CREE) if you are looking for a great stocks to invest in. Starting with the MAS shares, which traded at $48.01 at the close of the recent session, gaining 0.95%. On Wednesday, the company’s shares shed $0.45 from its value which represented in intraday trading. The stock is now 0.04% higher in year-to-date (YTD) trading. MAS’s intraday high was $48.02 while its lowest price touched $47.46. The stock’s 52-week high price is $48.41, which means the current price is at -0.83%. In terms of trading activity, the daily trading volume fell to 2694555 against 200-day average trading volume of 2,906,739 shares.

What are analyst forecasts for Masco Corporation (NYSE:MAS)?

At a consensus rating of 4.57, MAS is trending as a streaking Strong Buy, as it has been the case a month ago when 13 analysts called it a Strong Buy. Two months ago, 15 analysts recommended, on average, that MAS stock is a Moderate Buy. The Industrial Goods company’s shares’ overall bullish trend saw it close higher on Wednesday compared to its opening price of $47.55 on the day.

Forecasts for Masco Corporation (NYSE:MAS) give the stock a fair value for the growth of 7.67% from its last price. The 12-month price forecast for the stock by analysts puts the stock’s mean price target at $52.00, which means the price per share could rise by nearly $3.99. The price range target is between a low of $47.00 and a high of $60.00. The stock would need to gain by about $19.98 to hit the estimated high or 0.63% from its 12-month low.

The consensus among 16 analysts is that it is a good time for one to Overweight in the Masco Corporation. 8 analysts rate MAS as a Buy, with 0 of 16 analysts rate it as a Sell. 2 have valued the stock as Overweight and 6 have recommended that investors Hold.

Masco Corporation (NYSE:MAS) Upgrades and Downgrades

In terms of rating changes, Jefferies on January 06, 2020, Downgrade Masco Corporation (MAS) at Hold. They believe the stock could reach $51 in the near term. Analysts at Atlantic Equities have assigned a Overweight rating for the stock in their research note on December 16, 2019 with an estimated price target of $60. Moreover, KeyBanc Capital Markets analysts issued a rating of Overweight for the stock on December 10, 2019. On November 21, 2019, the stock earned a Buy rating due to an analyst call from Deutsche Bank, while analysts from Buckingham Research on September 18, 2019 suggested that the stock is Neutral.

Cree Inc. (NASDAQ:CREE) adds $0.38 on Wednesday

The CREE stock has risen 11.12% year-to-date and is currently trading at $51.28, which is -25.91% below its 52-week high. The company shares gained 0.76% on the day and have risen nearly 26.74% off a low hit. At current levels, Cree Inc. has a valuation of about $1.05B. As of 01/15/20, this stock has risen 8.44% during the week and closed at $50.90 in the previous session. However, recent Cree Inc. stock performance shows that CREE shares are 13.03% up over the last month, and 5.30% up for the last three months.

Earnings per share (EPS) estimates for the current quarter are $0.17, with the trailing 12-month share earnings at -$0.90. The ratio is expected to be down by -141.90% for the current year 2019 and 229.00% for next year. Over the next 5-year period, earnings per share will be 49.77%. But will the CREE stock surprise in the current quarter results, where the -$0.03 actual EPS reported on 9/29/2019 surprised by 40.00% or was higher by $0.02 from the estimated -$0.05.

Sales Growth to climb 16.70% for the year

How well will Cree Inc. perform as a business over the current quarter, year and next 5-year period? Compared to the year-ago quarter, analysts forecast the company to bring in between $223.03M and $238M in current quarter sales. The consensus estimated for the current quarter is $235.68M from sales. Forecasts for this fiscal year are between $924.13M and $1B and the consensus estimate for sales is at $963.09M.

Who owns shares in Cree Inc. (CREE)?

Let’s briefly focus on the share ownership of the Cree Inc. (NASDAQ:CREE) stock, where we find that 101.27% of shares are held by institutions. Blackrock Inc. tops the list of institutional owners as it is holding 12.05 million shares or 11.19% of shares outstanding. Capital Research Global Investors and ClearBridge Investments, LLC held 10.8 million and 10.34 million representing 10.03% and 9.60% respectively at the close of the last trading session. As of Sep 29, 2019, Vanguard Group, Inc. (The) accounted for 9.85 million shares at over 482.57 million. This represented 9.14% of shares outstanding. Primecap Management Company held 8.02 million shares at over 392.89 million representing 7.44% of shares outstanding.

CREE Insider Activity

On 9/27/2019, President & Chief Executive Officer by the name Lowe Gregg A sold 23340.0 shares worth $1.1 million at the price of $48.18 per share. Filings also show that Lowe Gregg A sold a total of 4362.0 shares on 9/01/2019 valued at $187300.0. Since the last insider activity, the company’s share price has climbed 22.74%.