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

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Micron (MU - Free Report) closed the most recent trading day at $82.24, moving +1.24% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.19%.

Heading into today, shares of the chipmaker had lost 9.2% over the past month, lagging the Computer and Technology sector's loss of 1.86% and the S&P 500's gain of 0.37% in that time.

Investors will be hoping for strength from MU as it approaches its next earnings release. In that report, analysts expect MU to post earnings of $1.60 per share. This would mark year-over-year growth of 95.12%. Meanwhile, our latest consensus estimate is calling for revenue of $7.09 billion, up 30.32% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.48 per share and revenue of $26.76 billion. These totals would mark changes of +93.64% and +24.84%, respectively, from last year.

Any recent changes to analyst estimates for MU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.06% higher. MU is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, MU is holding a Forward P/E ratio of 14.82. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.82.

It is also worth noting that MU currently has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor Memory stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 129, putting it in the top 50% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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