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

·3 min read

Micron (MU) closed at $55.23 in the latest trading session, marking a -1.95% move from the prior day. This change lagged the S&P 500's daily loss of 0.41%.

Prior to today's trading, shares of the chipmaker had lost 8.33% over the past month. This has was narrower than the Computer and Technology sector's loss of 9.08% and lagged the S&P 500's loss of 5.13% in that time.

Micron will be looking to display strength as it nears its next earnings release, which is expected to be September 29, 2022. The company is expected to report EPS of $1.52, down 37.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.94 billion, down 16.16% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Micron. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 12.96% lower. Micron currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Micron currently has a Forward P/E ratio of 10.01. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 10.01.

We can also see that MU currently has a PEG ratio of 0.74. 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 0.74 as of yesterday's close.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 252, putting it in the bottom 1% 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.

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

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