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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 $73.49, marking a -1.16% move from the previous day. This change lagged the S&P 500's daily loss of 0.58%.

Prior to today's trading, shares of the chipmaker had gained 4.82% over the past month. This has outpaced the Computer and Technology sector's gain of 2.08% and the S&P 500's gain of 0.16% in that time.

Wall Street will be looking for positivity from MU as it approaches its next earnings report date. This is expected to be September 28, 2021. In that report, analysts expect MU to post earnings of $2.31 per share. This would mark year-over-year growth of 113.89%. Meanwhile, our latest consensus estimate is calling for revenue of $8.19 billion, up 35.28% from the prior-year quarter.

Any recent changes to analyst estimates for MU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. 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 6.13. For comparison, its industry has an average Forward P/E of 6.13, which means MU is trading at a no noticeable deviation to the group.

Also, we should mention that MU has a PEG ratio of 0.48. 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 0.48 as of yesterday's close.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 247, which puts it in the bottom 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.

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


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