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Micron (MU) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Micron (MU - Free Report) closed at $72.27, marking a -1.86% move from the previous day. This move lagged the S&P 500's daily loss of 0.13%.

Coming into today, shares of the chipmaker had lost 2.99% in the past month. In that same time, the Computer and Technology sector gained 4.3%, while the S&P 500 gained 2.07%.

MU will be looking to display strength as it nears its next earnings release, which is expected to be September 28, 2021. On that day, MU is projected to report earnings of $2.31 per share, which would represent year-over-year growth of 113.89%. Our most recent consensus estimate is calling for quarterly revenue of $8.19 billion, up 35.28% from the year-ago period.

Any recent changes to analyst estimates for MU should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.45% lower. MU currently has a Zacks Rank of #4 (Sell).

Digging into valuation, MU currently has a Forward P/E ratio of 6.07. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 6.07.

We can also see that MU currently has a PEG ratio of 0.47. 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. Semiconductor Memory stocks are, on average, holding a PEG ratio of 0.47 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 247, putting it in the bottom 3% 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.

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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