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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 $46.26, marking a -1.97% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the chipmaker had gained 9.03% in the past month. In that same time, the Computer and Technology sector gained 8.71%, while the S&P 500 gained 7.08%.

MU will be looking to display strength as it nears 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, the Zacks Consensus Estimate for revenue is projecting net sales of $5.01 billion, down 36.63% from the year-ago period.

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 should also note any recent changes to analyst estimates for MU. 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.

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).

In terms of valuation, MU is currently trading at a Forward P/E ratio of 19.51. For comparison, its industry has an average Forward P/E of 19.51, 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 107, which puts it in the top 42% 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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