Micron (MU) Gains As Market Dips: What You Should Know
In the latest trading session, Micron (MU) closed at $67.71, marking a +1.12% move from the previous day. This change outpaced the S&P 500's 0.13% loss on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.26%.
Coming into today, shares of the chipmaker had lost 7.49% in the past month. In that same time, the Computer and Technology sector lost 12.85%, while the S&P 500 lost 10.72%.
Wall Street will be looking for positivity from Micron as it approaches its next earnings report date. On that day, Micron is projected to report earnings of $2.45 per share, which would represent year-over-year growth of 30.32%. Meanwhile, our latest consensus estimate is calling for revenue of $8.69 billion, up 17.1% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.54 per share and revenue of $33.55 billion. These totals would mark changes of +57.43% and +21.1%, respectively, from last year.
Any recent changes to analyst estimates for Micron 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Micron is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Micron is holding a Forward P/E ratio of 7.02. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.02.
Also, we should mention that MU has a PEG ratio of 0.22. 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 0.22 as of yesterday's close.
The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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