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Is Micron (MU) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Micron (MU - Free Report) . MU is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 13.24, while its industry has an average P/E of 13.63. Over the last 12 months, MU's Forward P/E has been as high as 19.30 and as low as 7.27, with a median of 15.63.

We also note that MU holds a PEG ratio of 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MU's PEG compares to its industry's average PEG of 1.33. Over the last 12 months, MU's PEG has been as high as 1.50 and as low as 0.90, with a median of 1.35.

These are only a few of the key metrics included in Micron's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MU looks like an impressive value stock at the moment.


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