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

Zacks Equity Research

Micron (MU) closed at $48.68 in the latest trading session, marking a -1.84% move from the prior day. This move lagged the S&P 500's daily loss of 0.12%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.02%.

Heading into today, shares of the chipmaker had gained 12.3% over the past month, outpacing the Computer and Technology sector's gain of 5.66% and the S&P 500's gain of 4.42% in that time.

Wall Street will be looking for positivity from MU as it approaches its next earnings report date. The company is expected to report EPS of $0.48, down 83.84% from the prior-year quarter. 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.

Any recent changes to analyst estimates for MU should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 5.23% lower. MU is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that MU has a Forward P/E ratio of 20.5 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 20.5.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% 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.

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


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