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

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Micron (MU - Free Report) closed at $80.64 in the latest trading session, marking a +0.19% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.04%.

Heading into today, shares of the chipmaker had gained 0.7% over the past month, lagging the Computer and Technology sector's gain of 6.01% and the S&P 500's gain of 1.35% in that time.

MU will be looking to display strength as it nears its next earnings release, which is expected to be June 30, 2021. In that report, analysts expect MU to post earnings of $1.67 per share. This would mark year-over-year growth of 103.66%. Our most recent consensus estimate is calling for quarterly revenue of $7.16 billion, up 31.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.55 per share and revenue of $27.02 billion, which would represent changes of +96.11% and +26.04%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for MU. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 1.54% higher within the past month. MU is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that MU has a Forward P/E ratio of 14.5 right now. For comparison, its industry has an average Forward P/E of 14.5, which means MU is trading at a no noticeable deviation to the group.

Also, we should mention that MU has a PEG ratio of 0.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Memory industry currently had an average PEG ratio of 0.93 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 9, putting it in the top 4% 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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