In the latest trading session, Micron (MU) closed at $71.42, marking a -0.06% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.39%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Heading into today, shares of the chipmaker had gained 15.58% over the past month, outpacing the Computer and Technology sector's gain of 7.06% and the S&P 500's gain of 4.06% in that time.
Wall Street will be looking for positivity from MU as it approaches its next earnings report date. This is expected to be January 7, 2021. In that report, analysts expect MU to post earnings of $0.71 per share. This would mark year-over-year growth of 47.92%. Meanwhile, our latest consensus estimate is calling for revenue of $5.73 billion, up 11.38% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.66 per share and revenue of $24.17 billion. These totals would mark changes of +29.33% and +12.76%, respectively, from last year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 36.35% higher. MU is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, MU is currently trading at a Forward P/E ratio of 19.5. This represents a no noticeable deviation compared to its industry's average Forward P/E of 19.5.
Also, we should mention that MU has a PEG ratio of 1.58. 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. The Semiconductor Memory was holding an average PEG ratio of 1.58 at yesterday's closing price.
The Semiconductor Memory industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% 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.
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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