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Micron (MU) Stock Sinks As Market Gains: What You Should Know

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Micron (MU - Free Report) closed at $87.77 in the latest trading session, marking a -1.72% move from the prior day. This change lagged the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq lost 0.59%.

Heading into today, shares of the chipmaker had gained 3.27% over the past month, outpacing the Computer and Technology sector's loss of 5.38% and the S&P 500's gain of 0.71% in that time.

Investors will be hoping for strength from MU as it approaches its next earnings release, which is expected to be March 31, 2021. On that day, MU is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 108.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.23 billion, up 29.84% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.61 per share and revenue of $26.05 billion. These totals would mark changes of +62.9% and +21.52%, respectively, from last year.

Any recent changes to analyst estimates for MU should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 18.39% higher. MU currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that MU has a Forward P/E ratio of 19.36 right now. Its industry sports an average Forward P/E of 19.36, so we one might conclude that MU is trading at a no noticeable deviation comparatively.

Investors should also note that MU has a PEG ratio of 2.1 right now. 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 industry had an average PEG ratio of 2.1 as of yesterday's close.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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