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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 $31.57, marking a -1.13% move from the previous day. This change lagged the S&P 500's daily loss of 0.12%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq added 0.08%.

Heading into today, shares of the chipmaker had lost 15.77% over the past month, lagging the Computer and Technology sector's loss of 4.42% and the S&P 500's loss of 6.96% in that time.

MU will be looking to display strength as it nears its next earnings release, which is expected to be March 28, 2019. The company is expected to report EPS of $1.80, down 36.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.02 billion, down 18.16% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.94 per share and revenue of $26.14 billion, which would represent changes of -33.56% and -14%, respectively, from the prior 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. 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. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 19.62% lower. MU is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, MU currently has a Forward P/E ratio of 4.02. This represents a no noticeable deviation compared to its industry's average Forward P/E of 4.02.

Also, we should mention that MU has a PEG ratio of 0.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor Memory stocks are, on average, holding a PEG ratio of 0.63 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 256, putting it in the bottom 0% 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.

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


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