Micron (MU) closed the most recent trading day at $38.58, making no change from the previous trading session. This move lagged the S&P 500's daily gain of 0.07%. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.13%.
Prior to today's trading, shares of the chipmaker had gained 7.44% over the past month. This has outpaced the Computer and Technology sector's gain of 7.08% and the S&P 500's gain of 5.36% in that time.
MU will be looking to display strength as it nears its next earnings release. In that report, analysts expect MU to post earnings of $1.75 per share. This would mark a year-over-year decline of 37.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.02 billion, down 18.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.72 per share and revenue of $25.68 billion, which would represent changes of -35.4% and -15.49%, respectively, from the prior year.
Any recent changes to analyst estimates for MU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate has moved 3.11% lower within the past month. MU currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, MU currently has a Forward P/E ratio of 5. For comparison, its industry has an average Forward P/E of 5, which means MU is trading at a no noticeable deviation to the group.
Meanwhile, MU's PEG ratio is currently 0.79. 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 0.79 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 255, putting it in the bottom 1% 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.
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