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Micron (MU) Outpaces Stock Market Gains: What You Should Know

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Micron (MU - Free Report) closed at $88.83 in the latest trading session, marking a +1.74% move from the prior day. This move outpaced the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.52%.

Coming into today, shares of the chipmaker had gained 6.51% in the past month. In that same time, the Computer and Technology sector lost 6.05%, while the S&P 500 lost 3.75%.

Micron will be looking to display strength as it nears its next earnings release. In that report, analysts expect Micron to post earnings of $1.95 per share. This would mark year-over-year growth of 98.98%. Our most recent consensus estimate is calling for quarterly revenue of $7.51 billion, up 20.44% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.95 per share and revenue of $32.03 billion. These totals would mark changes of +47.69% and +15.63%, respectively, from last year.

Any recent changes to analyst estimates for Micron should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.52% higher. Micron is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Micron is holding a Forward P/E ratio of 9.76. For comparison, its industry has an average Forward P/E of 9.76, which means Micron is trading at a no noticeable deviation to the group.

Meanwhile, MU's PEG ratio is currently 0.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor Memory stocks are, on average, holding a PEG ratio of 0.4 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 8, 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.

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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