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

Zacks Equity Research

In the latest trading session, Micron (MU) closed at $50.48, marking a -0.71% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 0.11%.

Prior to today's trading, shares of the chipmaker had gained 14.94% over the past month. This has outpaced the Computer and Technology sector's gain of 4.15% and the S&P 500's gain of 4.17% in that time.

MU will be looking to display strength as it nears its next earnings release, which is expected to be September 26, 2019. The company is expected to report EPS of $0.48, down 86.4% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.51 billion, down 46.51% from the year-ago period.

Any recent changes to analyst estimates for MU should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.91% higher. MU is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note MU's current valuation metrics, including its Forward P/E ratio of 20. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 20.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 2, putting it in the top 1% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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