Back to top

Image: Bigstock

Micron (MU) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Micron (MU - Free Report) closed at $34.24 in the latest trading session, marking a +1.09% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.08%.

Coming into today, shares of the chipmaker had gained 16.71% in the past month. In that same time, the Computer and Technology sector gained 7.59%, while the S&P 500 gained 9.27%.

Investors will be hoping for strength from MU as it approaches its next earnings release, which is expected to be March 28, 2019. The company is expected to report EPS of $1.75, down 37.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.02 billion, down 18.16% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.72 per share and revenue of $25.68 billion, which would represent changes of -35.4% and -15.49%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for MU. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 3.11% lower within the past month. MU is currently sporting a Zacks Rank of #5 (Strong Sell).

Investors should also note MU's current valuation metrics, including its Forward P/E ratio of 4.39. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 4.39.

Investors should also note that MU has a PEG ratio of 0.69 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor Memory industry currently had an average PEG ratio of 0.69 as of yesterday's close.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 256, which puts it in the bottom 1% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Micron Technology, Inc. (MU) - free report >>

Published in