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

Zacks Equity Research

Micron (MU) closed at $57.33 in the latest trading session, marking a +0.79% move from the prior day. This move outpaced the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 1.13%.

Prior to today's trading, shares of the chipmaker had lost 0.75% over the past month. This has lagged the Computer and Technology sector's gain of 5.28% and the S&P 500's gain of 2.95% in that time.

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 $0.37 per share. This would mark a year-over-year decline of 78.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.67 billion, down 20% from the year-ago period.

MU's full-year Zacks Consensus Estimates are calling for earnings of $2.43 per share and revenue of $20.44 billion. These results would represent year-over-year changes of -61.73% and -12.66%, respectively.

It is also important to note the recent changes to analyst estimates for MU. Recent revisions tend to reflect the latest near-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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MU is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, MU currently has a Forward P/E ratio of 23.41. For comparison, its industry has an average Forward P/E of 23.41, which means MU is trading at a no noticeable deviation to the group.

The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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.

To follow MU in the coming trading sessions, be sure to utilize Zacks.com.


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