Back to top

Image: Bigstock

Micron (MU) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Micron (MU - Free Report) closed at $73.84 in the latest trading session, marking a +0.71% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.15%.

Heading into today, shares of the chipmaker had gained 3.85% over the past month, outpacing the Computer and Technology sector's loss of 1.03% and the S&P 500's gain of 0.89% in that time.

Wall Street will be looking for positivity from Micron as it approaches its next earnings report date. The company is expected to report EPS of $2.45, up 30.32% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.69 billion, up 17.1% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.54 per share and revenue of $33.55 billion. These totals would mark changes of +57.43% and +21.1%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Micron. These revisions help to show the ever-changing nature of 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Micron is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Micron is holding a Forward P/E ratio of 7.68. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.68.

It is also worth noting that MU currently has a PEG ratio of 0.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor Memory stocks are, on average, holding a PEG ratio of 0.24 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 104, putting it in the top 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Micron Technology, Inc. (MU) - free report >>

Published in