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Micron (MU) Outpaces Stock Market Gains: What You Should Know

·3 min read
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In the latest trading session, Micron (MU) closed at $84.34, marking a +0.23% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.15%.

Coming into today, shares of the chipmaker had lost 0.31% in the past month. In that same time, the Computer and Technology sector lost 0.49%, while the S&P 500 gained 0.58%.

Wall Street will be looking for positivity from MU as it approaches its next earnings report date. In that report, analysts expect MU to post earnings of $1.67 per share. This would mark year-over-year growth of 103.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.16 billion, up 31.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.55 per share and revenue of $27.02 billion, which would represent changes of +96.11% and +26.04%, respectively, from the prior year.

Any recent changes to analyst estimates for MU should also be noted by investors. 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. 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.

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 has moved 1.54% higher within the past month. MU is currently a Zacks Rank #2 (Buy).

Investors should also note MU's current valuation metrics, including its Forward P/E ratio of 15.16. For comparison, its industry has an average Forward P/E of 15.16, which means MU is trading at a no noticeable deviation to the group.

It is also worth noting that MU currently has a PEG ratio of 0.97. 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 0.97 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 8, putting it in the top 4% 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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