In the latest trading session, Micron (MU) closed at $49.85, marking a +0.3% move from the previous day. The stock outpaced the S&P 500's daily loss of 2.37%. Elsewhere, the Dow lost 1.92%, while the tech-heavy Nasdaq lost 3.02%.
Heading into today, shares of the chipmaker had gained 10.2% over the past month, outpacing the Computer and Technology sector's loss of 2.69% and the S&P 500's loss of 2.31% in that time.
MU will be looking to display strength as it nears its next earnings release, which is expected to be September 29, 2020. On that day, MU is projected to report earnings of $1 per share, which would represent year-over-year growth of 78.57%. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, up 21.38% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for MU. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.92% lower. MU is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, MU currently has a Forward P/E ratio of 14.59. For comparison, its industry has an average Forward P/E of 14.59, which means MU is trading at a no noticeable deviation to the group.
Meanwhile, MU's PEG ratio is currently 1.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MU's industry had an average PEG ratio of 1.42 as of yesterday's close.
The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 251, putting it in the bottom 2% 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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Micron Technology, Inc. (MU) : Free Stock Analysis Report
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