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

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Micron (MU - Free Report) closed at $72.14 in the latest trading session, marking a -0.32% move from the prior day. This change lagged the S&P 500's 0.08% loss on the day.

Prior to today's trading, shares of the chipmaker had gained 0.88% over the past month. This has outpaced the Computer and Technology sector's loss of 0.11% and the S&P 500's loss of 1.81% in that time.

Investors will be hoping for strength from MU as it approaches 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.

Investors might also notice recent changes to analyst estimates for MU. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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).

Valuation is also important, so investors should note that MU has a Forward P/E ratio of 5.96 right now. Its industry sports an average Forward P/E of 5.96, so we one might conclude that MU is trading at a no noticeable deviation comparatively.

It is also worth noting 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. The Semiconductor Memory was holding an average PEG ratio of 0.47 at yesterday's closing price.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 248, which puts 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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