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

Zacks Equity Research

In the latest trading session, Micron (MU) closed at $47.82, marking a +0.23% move from the previous day. This change outpaced the S&P 500's 0.05% gain on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.11%.

Heading into today, shares of the chipmaker had gained 4.86% over the past month, lagging the Computer and Technology sector's gain of 4.89% and outpacing the S&P 500's gain of 4.32% in that time.

Investors will be hoping for strength from MU as it approaches its next earnings release. In that report, analysts expect MU to post earnings of $0.48 per share. This would mark a year-over-year decline of 83.84%. Meanwhile, our latest consensus estimate is calling for revenue of $5.01 billion, down 36.63% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.39 per share and revenue of $20.29 billion, which would represent changes of -62.36% and -13.33%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for MU. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.23% lower. MU is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that MU has a Forward P/E ratio of 19.97 right now. Its industry sports an average Forward P/E of 19.97, so we one might conclude that MU is trading at a no noticeable deviation comparatively.

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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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