43.40 0.00 (0.00%)
After hours: 7:59PM EDT
|Bid||43.35 x 21500|
|Ask||43.43 x 1300|
|Day's Range||42.53 - 43.57|
|52 Week Range||28.39 - 64.66|
|Beta (3Y Monthly)||1.48|
|PE Ratio (TTM)||3.96|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Micron (MU) got some upbeat commentary from MKM analyst Ruben Roy. Though much of the narrative ties to DRAM pricing trends, some important insights tied to the DRAM industry is expected to come out in the form of SK Hynix and Samsung reporting results on April 24th and 27th, respectively.Roy noted, "We continue to recommend MU shares following recent industry and supply chain data points which suggest that the memory market participants continue to actively navigate a challenging demand environment by managing supply side inputs. While the slope of a potential recovery in the second half of this year remains difficult to assess, we believe that profitability metrics are likely to bottom by the end of the first half of the calendar year. From a longer-term perspective, we continue to remain positive on the memory sector given that content is likely to increase as emerging applications such as AI, autonomous driving, machine learning, and data analytics/data science continue to evolve. For MU specifically, as competitive technology gaps narrow, we expect market share gains, longer-term. Our 12-month price target of $50 is based on a 9x multiple on our C2020 EPS estimate."Roy reiterates a Buy rating on Micron stock, with a $50 price target, which implies nearly 16% upside from current levels. (To watch Roy's track record, click here)The stock has consistently trended higher since bottoming out at around $30 in January. Since March 20th, earnings announcement, the stock has been range bound between $37 to $43 in the month of April. The follow-on of earnings results from semiconductor peers and the reported results tied to other parts of the memory supply chain might help with sentiment tied to the sector. This could add some upside to the stock, but mostly on multiple expansion until earnings results improve on better DRAM and NAND pricing.The supply glut can be owed to the fact that a number of end-markets have performed less desirably. PC shipments declined by 4.6% in Q1’19, according to Gartner and IDC. Whereas IDC also anticipates a 0.8% decline in smartphone shipments in 2019. Hence, scaling back memory supply makes a lot of sense in this environment, which is what investors in Micron are anticipating across the entire memory supply chain.The long-term narrative still makes sense for memory, because it’s bound to recover given the efforts by industry participants to cutback on spending. Nanya Technology cutback on capex by 34% in 2019 whereas ASML reported lithography spend for memory would be lower by 30% in 2019 versus 2018.The price of memory may have finally found a base at $0.66 in Q1’19 versus pricing of $0.67 in Q4’18. It was also noted that the average GB of memory in laptops was 12.8 GB in Q1’19, which was driven by the drop-off in pricing for memory. Pricing remained flat over the prior two-quarters, which implies that pricing is at least stabilizing in the DRAM segment whereas SSD pricing could continue to trend lower.If pricing does stabilize, we will likely see more announcements in the way of production cuts. Samsung and SK Hynix have already reported that they will no longer open new facilities tied to flash memory difficulties. However, to move the needle even further, both Samsung and SK Hynix would need to cut output from its pre-existing facilities, which they might announce during Q1’ earnings season. Micron, Samsung and SK Hynix account for 96% of the global memory market. Micron has already announced that they would cut production by 5% in both memory and NAND in 2019. For the market to rebalance, both Samsung and SK Hynix would need to cut production by similar amount, which would signal an end to the recent pricing declines for memory.All in all, sentiment tied to Micron has trended higher, as more analysts pile onto the stock in anticipation of what will be a turnaround in pricing, though much of that is dependent on the willingness of other suppliers cutting back on production.When looking at Wall Street’s stance, Roy is not the only bull, as TipRanks analytics showcase MU as a Buy. Out of 26 analysts polled in the last 3 months, 13 rate Micron stock a Buy, 10 maintain Hold, and 3 recommend Sell. The 12-month average price target stands at $53.89 marking nearly 25% upside from where the stock is currently trading. (See MU’s price targets and analyst ratings on TipRanks) Read more on MU: * Micron (MU) Stock Is Heading Back Down to $32, Analyst Says * Will Micron (MU) Stock’s Momentum Continue? * Micron (MU) Stock: Breaking Down RBC’s New Bullish Call More recent articles from Smarter Analyst: * Here's What Analysts Are Saying About Snap Stock Ahead of Earnings * Wedbush Sets Expectations on Twitter (TWTR) Stock Ahead of Q1'19 Earnings * Cannabis Stock CannTrust (CTST) Reported Key Metrics that Give Investors Insight Into Q1'19 Results * Advanced Micro Devices (AMD) Stock Is Back in a Big Way
Earlier this month, 37 already-strained Chinese organizations became even more difficult for U.S. companies to do business with. U.S. tech company Applied Materials (NASDAQ:AMAT), in fact, has suspended trade with these organizations until further notice. While Applied Materials stock hasn't been hurt yet, the fallout from the decision may not yet be fully appreciated.Source: Shutterstock On April 10, the U.S. Commerce Department updated its so-called 'red flag' list of organizations that are "unverified" entities. Although unverified entities aren't forbidden trade partners, they require additional licensing. They also require caution before buying from, or selling to, to avoid running afoul of strict trade rules."Even though it's not an embargo, because of the hassle sometimes suppliers will treat it as an embargo," said Kevin Wolf, former assistant secretary of commerce for export administration. "It has a practical effect that's greater than the legal effect."InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo that end, it remains to be seen if the maneuver is part of a bigger tactic to bring China to the trade negotiation table, or a security concern that was going to take shape anyway. While the list includes organizations based in United Arab Emirates, Malaysia and Indonesia, China's 37 additions were far more than any other nation. * 5 Dividend Stocks Perfect for Retirees Regardless of the intent, the updated list puts more pressure on China's struggling economy, as well as U.S. suppliers and customers. Fallout and Applied Materials StockWhile the fallout from the additions to the Commerce Department's red flag list is still being weighed, whatever the broader implications it still is significant for Applied Materials. More than one-fourth of last quarter's revenue came from China alone. While not all of its Chinese partners have been affected, its remaining partners may also rely on trade with names that now require new permissions from U.S. regulators.San'an Optoelectronics, China's biggest supplier of LED chips, was one of the noteworthy names currently off-limits to Applied Materials. Other customers include Xian Jiaotong University and the Chinese Academy of Sciences.Applied Materials' response appears decisive too. According to reports from Nikkei Asian Review, the company instructed its employees to "immediately stop all pending and future equipment delivery. It also asked its employees to withdraw from sites where red-flagged entities operate. Trade War Faints and Applied Materials StockChina's regulatory governors responded to the additional names of unverified entities, with trade ministry spokesman Gao Feng calling the behavior "wrong," and calling for the U.S. to undo its action.The rhetoric between the two countries is nothing new, however.As promised during his campaign, President Donald Trump has been tough on China's trade policies with the United States. In June of last year, steep tariffs were placed on roughly $50 billion worth of goods imported from China into the United States, sparking a war of new tit-for-tat tariffs.Though they were intended to bolster demand for U.S. goods corporations ranging from carmaker Ford Motor (NYSE:F) to food giant Tyson Foods (NYSE:TSN) to Coca-Cola (NYSE:KO) have all claimed to be victims of the political standoff.By its specificity, the updated list of unverified companies is a step in a new direction though. It could be interpreted as an effort to quell unauthorized use of American-developed and U.S.-patented technologies.Applied Materials, along with Micron Technology (NASDAQ:MU) and Taiwan's Nanya jointly filed official complaints in late 2017, alleging China was the ultimate buyer of illegally-acquired semiconductor technologies. The Bottom Line on Applied Materials StockThe news thus far may only have boosted Applied Materials stock. AMAT shares are up 4%, swept higher with the broad market tide Other factors perhaps include the impression that its intellectual property is being better protected, or that it will remain highly competitive going forward even if it struggles with its new restrictions.By and large though, the impact of the Department of Commerce's new red flag list remains unclear. Applied Materials has not indicated to what extent, if any, it is seeking licenses to deal with the entities newly placed in the red-flag list.If China acquiesces rather than doubles down on the trade front, Applied Materials should wind up more competitively positioned even if it has to find new suppliers and customers.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post New Pressure on China Might Just Boost Applied Materials Stock appeared first on InvestorPlace.
Today we'll evaluate Micron Technology, Inc. (NASDAQ:MU) to determine whether it could have potential as an investment idea. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the qualit...
Micron (MU) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
The end of the litigation between Qualcomm (NASDAQ:QCOM) and Apple (NASDAQ:AAPL) sparked a fire for both of those stocks and the semiconductor sector as a whole. The renewed bullishness for semiconductor stocks could continue through to the rest of the year for one good reason -- Apple and Qualcomm agreeing to end the litigation set the stage for friendlier times among technology firms ahead. Instead of fighting for high IP royalty rates, semiconductor stocks could forge multiyear supply deals with its customers.Sure, investors could risk overpaying for stocks by blindly assuming IP deals are coming. Fortunately, Apple is a big customer and has a high demand for components, benefiting semiconductor suppliers. * 5 Dividend Stocks Perfect for Retirees What are the five semiconductor stocks to buy for a spring charge?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Semiconductor Stocks to Buy: Qualcomm (QCOM)Source: Shutterstock Qualcomm and Apple agreed to drop all litigation, including those with Apple's contract manufacturers. Instead, Apple will pay Qualcomm in addition to signing a six-year license agreement, effective as of Apr. 1, 2019. The companies have an option to extend the deal for another two years. Qualcomm disclosed that the deal will add $2 in incremental EPS.Even though QCOM shares rose 40% on the week, the company's fair value rises sharply thanks to the deal with Apple. At a recent price of $79, the stock is trading at a discount because the company could win more supply deals with the top Android phone makers. Competitors cannot afford to let Apple have the best technology and could order Qualcomm's latest chip solutions to stay ahead.In the near-term, QCOM stockholders get two immediate positive catalysts. First, uncertainties are no longer an overhanging to the stock because Qualcomm no longer needs to keep going to court. Second, Qualcomm has guaranteed a revenue stream for the next six years. That stability is worth paying for, especially in the cyclical semiconductor market. Intel Corporation (INTC)Source: Shutterstock The Qualcomm-Apple settlement led to shares of Intel (NASDAQ:INTC) rallying a few points. Intel announced that it would abandon 5G phone modem development. Previously, Apple was rumored to release a 5G iPhone in 2020 that used Intel's modem. But now that Apple has a deal that allows it to use Qualcomm's far superior modem instead. If Intel lost the modem business to Qualcomm, one would think INTC stock would fall, not rise.Intel's modems are generally inferior to that of QCOM-powered ones. By exiting this market, Intel will become less distracted from the mobile devices market. Instead, it may now turn its sights back on the more profitable business of CPUs in the PC and servers. * 10 S&P 500 Stocks to Weather the Earnings Storm Intel's valuations are very attractive, too. The stock trades at a trailing price-to-earnings ratio of 13x. Despite the worrying competition from Advanced Micro Devices (NASDAQ:AMD), Intel still has loyal customers on the consumer and business markets. Still, Intel has plenty of work ahead. It is behind on the 7nm chip manufacturing and its latest products are supply-constrained. This is putting a cap on its revenue growth for the near-term.Advanced Micro Devices (AMD)Source: Shutterstock Advanced Micro Devices is enjoying a nice uptrend that began at the start of 2019. Valuations are not that compelling, but markets are willing to pay a premium. AMD stock is undergoing a multiyear transition that led to multiple product launches across three main lines of business: server, desktop and graphics cards. All three of these products are potential growth generators for AMD.In the server space, EPYC's scalability and computing power give enterprise customers good value compared to Intel's Xeon chips. CEO Lisa Su may announce Ryzen getting a refresh with a third-generation release next month at Computex. As AMD discounts current-generation Ryzen CPUs for the PC and notebook markets, it could gain market share over Intel.In the GPU space, the announcement for Navi, a mid-range solution, could help AMD win back market share from Nvidia (NASDAQ:NVDA). Nvidia leaped ahead of AMD with a GTX 1660 Ti release a few months ago. Rumors that a GTX 1650 for just $149 could further Nvidia's lead over AMD. NXP Semiconductors (NXPI)Source: Elektor Labs via FlickrNXP Semiconductors (NASDAQ:NXPI) traded above $101 for the first time since Jul. 2018. The stock lost all its value when the Chinese government delayed approval of Qualcomm buying the firm. NXP then earned a break-up fee of $2 billion and proceeded to buy back billions of dollars' worth of its shares.Investors should look at NXPI stock again now that markets largely forgave the company for buying back stock at a higher price. Management has a five-year autonomous driving supply plan in place. And with more technology components in vehicles, NXPI will stand to benefit. At a 14.9 times trailing P/E and 11.2 times forward P/E, NXPI stock is an appropriate stock to buy for the spring 2019 session. * 7 Stocks to Buy for Spring Season Growth NXP is scheduled to reported earnings on April 29. The company's prudent cost management, design wins and supply deals in 2019 will attract more buyers to the stock, and its ability to focus back on its core strengths will drive the stock back to 52-week highs of over $122. And even at that level, the stock will trade at a discount relative to the free cash flow generation from its businesses. Micron Technology (MU)Source: Shutterstock Micron Technology's (NASDAQ:MU) downside third-quarter guidance failed to scare off investors as the stock rose 28.5% during the quarter. In its second-quarter report, Micron reported DRAM sales falling 28%. NAND did better year-over-year and up 2%. On a quarter-over-quarter comparison, NAND revenue fell 18%.Micron forecast third-quarter revenue of around $4.8 billion and EPS of between 75 cents and 95 cents. Both numbers are below consensus estimates. Unsurprisingly, several analysts issued "hold" or "sell" calls on MU stock in the last month, according to Tipranks. But collectively, the 25 analysts covering the stock have an average price target of $54.41, representing an upside of around 26%.Investors should add MU stock to their portfolios this spring for the simple reason that NAND and DRAM prices appear to be stabilizing. Markets adjusted to the U.S.-China tariffs now and place. A refresh in premium smartphones, ongoing demand for memory and high-speed storage for servers and the firming up of PC sales will benefit Micron in the current period.As of this writing, Chris Lau owned shares of NXP Semiconductors. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post 5 Semiconductor Stocks to Buy for a Spring Charge appeared first on InvestorPlace.
MKM Partners analyst Ruben Roy on Thursday reiterated his Buy rating for Micron shares, predicting its profitability will improve later this year.
Why Jeffrey Gundlach Thinks Now's a Good Selling Opportunity(Continued from Prior Part)Jeffrey Gundlach on central banks Jeffrey Gundlach presented his views on central banks’ policies and how they impact investments during his interview with The
Here Are Some Secrets behind NVIDIA's Success(Continued from Prior Part)NVIDIA’s go-to-market strategyFor any business to grow, it needs a good product and a strong go-to-market strategy to put the product in the hands of the consumer. Many
WDC, MU, AMD among Top Gainers of the S&P 500 IndexWestern Digital stock soars on analyst ratingsThe April 16 trading session started with memory chip stocks among the top gainers of the S&P 500 Index (SPY). At the start of the trading
Are These Tech Stocks Overvalued after Nearing 52-Week Highs?(Continued from Prior Part)Stock returns The stock of semiconductor (SMH) company Analog Devices (ADI) has generated returns of 21% in the last 12 months. The stock, like the broader
Nomura Instinet analyst David Wong on Tuesday initiated coverage on Micron stock with a Neutral rating, predicting its profit margins will drop later this year.
Micron Technology, Inc. (NASDAQ: MU ) is back on track in 2019 after a rough 2018, but one Wall Street analyst says investors can expect more mixed performance from Micron shares ahead. The Analyst Nomura ...
Ups and Downs for Einhorn’s Greenlight Capital in Q1(Continued from Prior Part)Brighthouse FinancialThe most significant contributors to Greenlight Capital’s (GLRE) gains last year included Micron Technology (MU) and Twitter (TWTR). Its biggest
On the other hand, a smaller number of investors are convinced the market is heading to new highs and are aggressively buying technology stocks. In late 2007, we at the Arora Report said stocks were in trouble. The answer lies in Arora’s Third Law of Investing: Make investing and trading decisions based on probabilities because it’s the only realistic and profitable approach.
When you're looking for potential investments in the real world, you don't find companies with great management, a strong balance sheet and outlook, all available at a great price. Investing is hard work but highly rewarding for disciplined and patient investors. Investors who follow Micron Technology know that presently its visibility is poor.
Coming off a disaster 2018, Micron (MU) stock appears to be making a comeback. But this isn’t necessarily unexpected — Micron’s fall in 2018 was largely not their own fault, but a result of cyclical industry dynamics where oversupply and lower demand contributed to industry-wide lower selling prices and therefore revenue. In short, many expected the downturn to come (perhaps not as strongly as it did) and, naturally, also expect the industry to rebound. However, while Micron and the industry are both showing signs of life, Morgan Stanley analyst Joseph Moore has taken a big step backwards, downgrading MU stock to Underweight (from Equal-Weight) with a $32 price target, citing the stock’s 30% rally since January. (To watch Moore's track record, click here) While the analyst does believe ”optimism [around] cloud demand” is real, he still sees “DRAM remaining oversupplied throughout the year and into next…[with] NAND is closer to a bottom than DRAM.” As a result, estimates for “FY20 are 58% below consensus and we think there is higher likelihood of downside vs.upside to our numbers.”Inventory remains a major hurdle for Micron. Moore says “inventory climbing to 150 days (vs prior 25-year highs around 115 or so) by mid year is a significant negative…[as[ current inventory is future supply and where there is excess supply, prices and margins go down.” But bluntly, Moore says, “it should be axiomatic when investing in a commodity that producer inventory is supply that has a negative impact on pricing.”Now, with that said, Moore does believe “demand snaps back in 2h,” but it won’t be “enough to keep inventory from building during a period of seasonal strength, which is likely to be very bad for pricing and margins.” And he cautions the “snapback..[won’t be} as strong as some think,” and it will take more time before the industry is stable. Most of the Street is far more confident than Moore's bearish stance, with TipRanks analytics showcasing MU as a Buy. Based on 25 analysts polled in the last 3 months, 14 rate a Buy on Micron stock, while 8 issue Hold and 3 recommend Sell. The 12-month average price target stands at $46.50, marking a nearly 11% upside from where the stock is currently trading. (See MU's price targets and analyst ratings on TipRanks)To read more on the nitty gritty of what’s going on in the tech industry, click here. More recent articles from Smarter Analyst: * Here's What Analysts Are Saying About Snap Stock Ahead of Earnings * Wedbush Sets Expectations on Twitter (TWTR) Stock Ahead of Q1'19 Earnings * Cannabis Stock CannTrust (CTST) Reported Key Metrics that Give Investors Insight Into Q1'19 Results * MKM Continues to Recommend Micron (MU) Stock; Here's Why
Q1 Earnings: Smaller Chip Companies to Take a Bigger BlowThe semiconductor industry in 2017 and 2018The last two years have been strong for the global semiconductor market with revenue growing 21.6% in 2017 and 13.7% in 2018 on a YoY basis,
A return to growth is likely on the horizon for the semiconductor industry as a whole, even if some face rough near-term outlooks. So, let's take a look at three Zacks buy-ranked semiconductor stocks right now.
After getting clobbered in the final stretch of 2018, semiconductor stocks are making up for lost time this year. is up nearly 28%, besting the rest of the broad market by nearly a factor of two. At a glance, it looks like Micron is staging a key turnaround right now.
We're seeing similar action on Tuesday as we did on Monday. Major U.S. stock indices started off lower on the day, with bears unable to gain meaningful ground and bulls trying to bid stocks back up into positive territory. The best part of these kinds days is the ability to take measured risk/reward day trades. It also gives us a chance to find some top stock trades. Top Stock Trades for Tomorrow 1: U.S. SteelShares of U.S. Steel (NYSE:X) are getting pummeled on Tuesday, down more than 9% on the day. It's got shares breaking down from the 20-day moving average and really not having any support nearby to cling to.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Risky Stocks to Watch as Earnings Season Kicks Off The next spot to watch will be $17, just below the stock's 52-week lows. If it gets there, investors need to see if this is a good level for a bounce or if X will continue even lower. On rallies, see how X handles the 20-day. Top Stock Trades for Tomorrow 2: Canada GooseAnother stock struggling with its 20-day moving average is Canada Goose (NYSE:GOOS). Despite the company's strong earnings report in February, GOOS is being squeezed lower against support.It's above short-term downtrend resistance, but still has plenty of resistance overhead. If it can get through the 20-day, a rally to the 50-day and perhaps $52 could be in the cards. Otherwise, investors have to start thinking about the downside.Below $47.50 and $43 to $44 is on deck. Below that and the December lows could be next. GOOS is looking ugly right now until it can put in some higher lows and takeout some resistance levels. Top Stock Trades for Tomorrow 3: TwitterAfter nine straight up days, Twitter (NYSE:TWTR) stock is getting into some overhead resistance and the stock is technically overbought, albeit barely. The bottom line? This isn't the time to initiate a long position, particularly with TWTR stock running right into range resistance.This could always be "the time," where Twitter stock breaks out. For me though, the risk/reward is simply not favorable. A pullback to $33-ish wouldn't be unhealthy and I'm not risking $2+ a share without having an upside target while Twitter is teetering on resistance if I can nab a safer entry.Bulls should wait for a buyable breakout trade or a pullback. Top Stock Trades for Tomorrow 4: MicronThe lesson we applied with Twitter can be highlighted with Micron (NASDAQ:MU). Last Wednesday, it looked like Micron was about to breakout, only to fail at resistance and pullback.Bulls who bought at $45 are underwater by almost $3.50 a share (an unrealized loss of 7.8%) all the while Micron still looks pretty healthy. At the time, I said some "caution may be warranted" and liked the idea of bulls buying on a test of the 50-day.I still stand with that idea, looking to buy about $1 a share below this mark. More aggressive bulls may feel comfortable stepping in now, but for me and in this choppy market, I'd rather risk missing a trade than taking on additional risk. Top Stock Trades for Tomorrow 5: Agilent TechnologyAgilent Technologies (NYSE:A) continues to trade very well, with shares putting in a series of higher lows and running into resistance near its highs.Investors can buy on pullback into uptrend support and the 20-day moving average, or trade a breakout over $82. A breakout trade could setup like this trade in Dentsplay (NASDAQ:XRAY).Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.Compare Brokers The post 5 Top Stock Trades for Wednesday: Micron, Twitter, U.S. Steel appeared first on InvestorPlace.
Why Semiconductor Stocks Fell on April 9(Continued from Prior Part)Samsung lowers first-quarter earnings guidance Most semiconductor stocks with exposure to the memory market are falling on the back of continued weakness. On April 5, Samsung (SSNLF)