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Micron (MU) Dips More Than Broader Markets: What You Should Know

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Micron (MU - Free Report) closed the most recent trading day at $39.76, moving -1.71% from the previous trading session. This change lagged the S&P 500's 0.43% loss on the day. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq added 0.26%.

Heading into today, shares of the chipmaker had lost 12.18% over the past month, lagging the Computer and Technology sector's loss of 6.53% and the S&P 500's loss of 4.68% in that time.

MU will be looking to display strength as it nears its next earnings release, which is expected to be December 18, 2018. On that day, MU is projected to report earnings of $2.92 per share, which would represent year-over-year growth of 19.18%. Our most recent consensus estimate is calling for quarterly revenue of $8.08 billion, up 18.8% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.46 per share and revenue of $31.12 billion. These totals would mark changes of -12.47% and +2.4%, respectively, from last year.

Any recent changes to analyst estimates for MU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.5% higher. MU currently has a Zacks Rank of #3 (Hold).

Investors should also note MU's current valuation metrics, including its Forward P/E ratio of 3.87. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 3.87.

Meanwhile, MU's PEG ratio is currently 0.61. 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. Semiconductor Memory stocks are, on average, holding a PEG ratio of 0.61 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 108, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow MU in the coming trading sessions, be sure to utilize Zacks.com.


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