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Micron (MU) Gains But Lags Market: What You Should Know

Zacks Equity Research
EnerSys (ENS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

In the latest trading session, Micron (MU) closed at $33.47, marking a +0.39% move from the previous day. The stock lagged the S&P 500's daily gain of 0.61%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.53%.

Coming into today, shares of the chipmaker had lost 16.13% in the past month. In that same time, the Computer and Technology sector lost 8.25%, while the S&P 500 lost 3.77%.

MU will be looking to display strength as it nears its next earnings release, which is expected to be June 25, 2019. In that report, analysts expect MU to post earnings of $0.82 per share. This would mark a year-over-year decline of 73.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.72 billion, down 39.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.27 per share and revenue of $23.26 billion, which would represent changes of -47.53% and -23.46%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 2.51% lower. MU is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, MU currently has a Forward P/E ratio of 5.31. Its industry sports an average Forward P/E of 5.31, so we one might conclude that MU is trading at a no noticeable deviation comparatively.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 247, putting it in the bottom 4% 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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