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Micron (MU) Flat As Market Gains: What You Should Know

Zacks Equity Research

Micron (MU) closed at $44.66 in the latest trading session, marking no change from the prior day. This change lagged the S&P 500's 0.29% gain on the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.19%.

Prior to today's trading, shares of the chipmaker had lost 7.94% over the past month. This has lagged the Computer and Technology sector's loss of 0.13% and the S&P 500's gain of 0.32% 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 $0.49 per share. This would mark a year-over-year decline of 83.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.01 billion, down 36.63% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.52 per share and revenue of $20.38 billion, which would represent changes of -60.31% and -12.93%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for MU. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 8.8% lower. MU is currently a Zacks Rank #3 (Hold).

Digging into valuation, MU currently has a Forward P/E ratio of 17.75. For comparison, its industry has an average Forward P/E of 17.75, 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 group has a Zacks Industry Rank of 99, putting it in the top 39% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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