Micron (MU) Dips More Than Broader Markets: What You Should Know
Micron (MU) closed at $70.35 in the latest trading session, marking a -1.32% move from the prior day. This move lagged the S&P 500's daily loss of 0.57%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the chipmaker had lost 2.72% in the past month. In that same time, the Computer and Technology sector lost 12.84%, while the S&P 500 lost 8.27%.
Wall Street will be looking for positivity from Micron as it approaches its next earnings report date. The company is expected to report EPS of $2.45, up 30.32% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.69 billion, up 17.1% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.54 per share and revenue of $33.55 billion. These totals would mark changes of +57.43% and +21.1%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Micron. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Micron is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Micron is currently trading at a Forward P/E ratio of 7.47. Its industry sports an average Forward P/E of 7.47, so we one might conclude that Micron is trading at a no noticeable deviation comparatively.
We can also see that MU currently has a PEG ratio of 0.23. 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 0.23 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 96, putting it in the top 38% 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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