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

Zacks Equity Research

Micron (MU) closed at $44.17 in the latest trading session, marking a -0.14% move from the prior day. This change lagged the S&P 500's 0.83% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.9%.

Prior to today's trading, shares of the chipmaker had lost 5.79% over the past month. This has lagged the Computer and Technology sector's loss of 2.06% and the S&P 500's loss of 2.38% in that time.

Wall Street will be looking for positivity from MU as it approaches its next earnings report date. On that day, MU is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 86.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.50 billion, down 46.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.22 per share and revenue of $23.04 billion. These totals would mark changes of -47.95% and -24.2%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MU. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. MU is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, MU currently has a Forward P/E ratio of 7.11. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.11.

The Semiconductor Memory industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 112, putting it in the top 44% 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.

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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