Is Cree a Buy After Its Post-Earnings Sell-Off? (CREE)

Shares of Cree (CREE) got hammered yesterday after the company reported solid earnings but offered up weaker-than-expected revenue guidance.

Cree is the current leader in the LED space. It makes lighting-class LEDs, LED lighting, and semiconductor solutions for wireless and power applications. Its product families include LED fixtures and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, power-switching devices and radio-frequency/wireless devices. Cree solutions are used in such applications as general illumination, backlighting, electronic signs and signals, variable-speed motors, and wireless communications.

LEDs have several advantages over other lighting sources, with the two biggest being efficiency and longevity. LEDs use much less electricity than incandescent bulbs, which generate a lot of heat because the filament must be warmed up to produce the light. Cree says its LEDs use only 10-15% of the power of an incandescent bulb, and about half the power of a fluorescent bulb.

Meanwhile, Cree LED lights last as long as 50,000 hours, or 50 times longer than an incandescent light and five times longer than a fluorescent bulb. Unlike fluorescent lights, though, LEDs use no toxic mercury. Cree also claims its lights look more natural than CFLs, thus having the benefits of incandescent lights without the high-energy costs or environmental impact.

In a recent report, BullMarket.com takes an in-depth look at Cree and its earnings, and examines whether or not the stock is now a buy after its recent tumble and where the stock could be headed.

Tags: CREE