Micron (MU) Gains As Market Dips: What You Should Know
In the latest trading session, Micron (MU) closed at $75.59, marking a +1.38% move from the previous day. This move outpaced the S&P 500's daily loss of 0.35%.
Coming into today, shares of the chipmaker had gained 7.71% in the past month. In that same time, the Computer and Technology sector gained 8.33%, while the S&P 500 gained 7.11%.
Wall Street will be looking for positivity from MU as it approaches its next earnings report date. This is expected to be December 20, 2021. The company is expected to report EPS of $2.10, up 169.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.66 billion, up 32.62% from the year-ago period.
MU's full-year Zacks Consensus Estimates are calling for earnings of $8.84 per share and revenue of $31.34 billion. These results would represent year-over-year changes of +45.87% and +13.13%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. MU is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, MU is holding a Forward P/E ratio of 8.44. Its industry sports an average Forward P/E of 8.44, so we one might conclude that MU is trading at a no noticeable deviation comparatively.
Meanwhile, MU's PEG ratio is currently 0.37. 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 0.37 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 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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