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Micron (MU) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Micron (MU - Free Report) closed at $97.86, marking a -1.06% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.16%.

Shares of the chipmaker witnessed a loss of 8.29% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.69% and the S&P 500's gain of 2.97%.

Analysts and investors alike will be keeping a close eye on the performance of Micron in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.08, indicating a 200.93% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $7.65 billion, up 90.85% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.16 per share and revenue of $24.93 billion. These totals would mark changes of +126.07% and +60.42%, respectively, from last year.

Any recent changes to analyst estimates for Micron should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Micron is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Micron currently has a Forward P/E ratio of 85.37. This represents no noticeable deviation compared to its industry's average Forward P/E of 85.37.

The Semiconductor Memory industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 41% of all industries, numbering over 250.

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.

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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