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

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Micron (MU - Free Report) closed the most recent trading day at $62.32, moving +1.5% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Heading into today, shares of the chipmaker had gained 4.32% over the past month, lagging the Computer and Technology sector's gain of 8.42% and the S&P 500's gain of 8.06% in that time.

Investors will be hoping for strength from Micron as it approaches its next earnings release. On that day, Micron is projected to report earnings of $1.62 per share, which would represent a year-over-year decline of 33.06%. Our most recent consensus estimate is calling for quarterly revenue of $7.21 billion, down 12.88% from the year-ago period.

MU's full-year Zacks Consensus Estimates are calling for earnings of $8.45 per share and revenue of $31.32 billion. These results would represent year-over-year changes of +39.44% and +13.06%, respectively.

Investors might also notice recent changes to analyst estimates for Micron. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 0.99% lower. Micron is currently sporting a Zacks Rank of #5 (Strong Sell).

Investors should also note Micron's current valuation metrics, including its Forward P/E ratio of 7.27. Its industry sports an average Forward P/E of 7.27, so we one might conclude that Micron is trading at a no noticeable deviation comparatively.

Meanwhile, MU's PEG ratio is currently 0.54. 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. The Semiconductor Memory industry currently had an average PEG ratio of 0.54 as of yesterday's close.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 252, putting it in the bottom 1% 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.

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


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