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Is Micron (MU) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Micron (MU) is a stock many investors are watching right now. MU is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.09 right now. For comparison, its industry sports an average P/E of 8.38. Over the past year, MU's Forward P/E has been as high as 20.73 and as low as 8.09, with a median of 14.13.

Investors will also notice that MU has a PEG ratio of 0.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MU's industry currently sports an average PEG of 0.54. Over the past 52 weeks, MU's PEG has been as high as 1.71 and as low as 0.52, with a median of 1.25.

These are only a few of the key metrics included in Micron's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MU looks like an impressive value stock at the moment.


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