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Micron (MU) Stock Drops Despite Market Gains: Important Facts to Note

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Micron (MU - Free Report) closed at $77.14 in the latest trading session, marking a -0.04% move from the prior day. This move lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq added 0.07%.

Shares of the chipmaker witnessed a gain of 11.84% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.61% and the S&P 500's gain of 4.02%.

Market participants will be closely following the financial results of Micron in its upcoming release. In that report, analysts expect Micron to post earnings of -$1.02 per share. This would mark a year-over-year decline of 2450%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.43 billion, indicating an 8.54% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$1.93 per share and a revenue of $20.92 billion, indicating changes of +56.63% and +34.63%, respectively, from the former 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.76% higher. At present, Micron boasts a Zacks Rank of #3 (Hold).

The Semiconductor Memory industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 38% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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