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

Zacks Equity Research

In the latest trading session, Micron (MU) closed at $48.11, marking a -1.19% move from the previous day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.

Coming into today, shares of the chipmaker had gained 13.63% in the past month. In that same time, the Computer and Technology sector gained 4.71%, while the S&P 500 gained 2.7%.

Investors will be hoping for strength from MU as it approaches its next earnings release. On that day, MU is projected to report earnings of $0.48 per share, which would represent a year-over-year decline of 83.84%. Meanwhile, our latest consensus estimate is calling for revenue of $5.01 billion, down 36.63% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.42 per share and revenue of $20.38 billion. These totals would mark changes of -61.89% and -12.93%, respectively, from last year.

Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 8.12% lower. MU is currently a Zacks Rank #3 (Hold).

In terms of valuation, MU is currently trading at a Forward P/E ratio of 20.13. For comparison, its industry has an average Forward P/E of 20.13, which means MU is trading at a no noticeable deviation to the group.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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