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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 $75.03 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's 0.25% gain on the day.

Heading into today, shares of the chipmaker had lost 3.24% over the past month, lagging the Computer and Technology sector's gain of 1.82% and the S&P 500's gain of 1.65% in that time.

Investors will be hoping for strength from MU as it approaches its next earnings release. The company is expected to report EPS of $2.31, up 113.89% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.19 billion, up 35.28% from the prior-year quarter.

MU's full-year Zacks Consensus Estimates are calling for earnings of $5.95 per share and revenue of $27.5 billion. These results would represent year-over-year changes of +110.25% and +28.3%, respectively.

Investors might also notice recent changes to analyst estimates for MU. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MU currently has a Zacks Rank of #3 (Hold).

Investors should also note MU's current valuation metrics, including its Forward P/E ratio of 12.76. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.76.

Also, we should mention that MU has a PEG ratio of 1. 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. The Semiconductor Memory industry currently had an average PEG ratio of 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 120, putting it in the top 48% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MU in the coming trading sessions, be sure to utilize Zacks.com.


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