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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 $63.41, marking a -0.86% move from the previous day. This move lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, added 0.06%.

Prior to today's trading, shares of the chipmaker had lost 2.32% over the past month. This has was narrower than the Computer and Technology sector's loss of 2.75% and the S&P 500's loss of 2.85% in that time.

Wall Street will be looking for positivity from Micron as it approaches its next earnings report date. In that report, analysts expect Micron to post earnings of -$1.19 per share. This would mark a year-over-year decline of 182.07%. Meanwhile, our latest consensus estimate is calling for revenue of $3.91 billion, down 41.2% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$4.56 per share and revenue of $15.44 billion. These totals would mark changes of -154.61% and -49.81%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Micron. Recent revisions tend to reflect the latest near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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