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

Zacks Equity Research
Autoliv (ALV) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Micron (MU) closed the most recent trading day at $42.73, moving -0.7% from the previous trading session. This move lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.21%.

Heading into today, shares of the chipmaker had gained 9.69% over the past month, outpacing the Computer and Technology sector's gain of 5.87% and the S&P 500's gain of 4.65% in that time.

Wall Street will be looking for positivity from MU as it approaches its next earnings report date. In that report, analysts expect MU to post earnings of $0.85 per share. This would mark a year-over-year decline of 73.02%. Meanwhile, our latest consensus estimate is calling for revenue of $4.80 billion, down 38.41% from the prior-year quarter.

MU's full-year Zacks Consensus Estimates are calling for earnings of $6.40 per share and revenue of $23.51 billion. These results would represent year-over-year changes of -46.44% and -22.65%, respectively.

Investors might also notice recent changes to analyst estimates for MU. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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 remained stagnant. MU is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, MU currently has a Forward P/E ratio of 6.72. For comparison, its industry has an average Forward P/E of 6.72, 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 industry currently has a Zacks Industry Rank of 249, which puts it in the bottom 3% of all 250+ industries.

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.

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


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