|Bid||45.25 x 800|
|Ask||45.30 x 4000|
|Day's Range||44.28 - 45.81|
|52 Week Range||28.39 - 51.39|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||5.22|
|Earnings Date||Dec 16, 2019 - Dec 20, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||54.48|
All three major U.S. indexes jumped Thursday on the back of some positive U.S.-China trade war news. Even if a deal isn't reached anytime soon the semiconductor industry seems sure to be a solid long-term play...
On CNBC's "Fast Money Halftime Report," Meghan Shue said she likes SPDR S&P Biotech (NYSE: XBI ). She thinks it's an area that has less political risk, pretty good earnings, a good innovation ...
At Insider Monkey, we pore over the filings of nearly 750 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we've gathered as a result gives us access to a wealth of collective knowledge based on these firms' portfolio holdings as of June 28. In this […]
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The Trump administration placed eight Chinese technology giants on a U.S. blacklist on Monday, accusing them of being implicated in human rights violations against Muslim minorities in the country’s far-western region of Xinjiang.The companies include two video surveillance companies -- Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. -- that by some accounts control as much as a third of the global market for video surveillance and have cameras all over the world. Also targeted were SenseTime Group Ltd. -- the world’s most valuable artificial intelligence startup -- and fellow AI giant Megvii Technology Ltd., which is said to be aiming to raise up to $1 billion in a Hong Kong initial public offering. Backed by Chinese e-commerce giant Alibaba Group Holding Ltd., the pair are at the forefront of China’s ambition to dominate AI in coming years.The move, which was announced after U.S. markets closed, came on the same day negotiators from the U.S. and China began working-level preparations for high-level talks due to begin Thursday in Washington. Entities on the list are prohibited from doing business with American companies without being granted a U.S. government license, though some have maintained relationships with banned companies through international subsidiaries. Hikvision and Dahua were suspended from trading Tuesday but iFlytek Co., one of the eight singled out, slid as much as 3.1% in Shenzhen.“Specifically, these entities have been implicated in human rights violations and abuses in the implementation of China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups” in Xinjiang, the U.S. Commerce Department said in a federal register notice published Monday.The move, first reported by Reuters, takes President Donald Trump’s economic war against China in a new direction, marking the first time his administration has cited human rights as a reason for action. Past moves to blacklist companies such as Huawei Technologies Co. have been taken on national security grounds. The president’s tariff war against Beijing, meanwhile, has been fought over issues such as intellectual property theft and control of technology as well as China’s broader industrial policy.SenseTime, Dahua and Megvii weren’t immediately available for comment outside of normal business hours. China’s Ministry of Commerce didn’t immediately respond to a faxed request for comment.“Hikvision strongly opposes today’s decision by the U.S. government and it will hamper efforts by global companies to improve human rights around the world,” the company said in a statement. “Punishing Hikvision, despite these engagements, will deter global companies from communicating with the U.S. government, hurt Hikvision’s U.S. businesses partners and negatively impact the U.S. economy.”It also comes as Trump faces growing pressure at home to support pro-democracy protests in the Chinese-controlled territory of Hong Kong. On Monday, Trump said he was hoping for a “humane solution” in a city where protests have grown increasingly violent.“They even have signs, ‘Make China Great Again,’ ‘Make Hong Kong Great Again,’” he told reporters. “They have tremendous signage.”None of the other companies had immediate comment. Some of the firms added to the list trade on Chinese exchanges, which weren’t open yet when the announcement was made in the U.S.What Our Economists Say:“With growth fading, the U.S. and China could both use at least a reprieve from trade tensions. A mini-deal was mooted. It now looks less likely.”\--Bloomberg Economics Chief Economist Tom OrlikRead the full analysis hereThe news broke just as Trump was attending the signing of a partial trade agreement with Japan and predicting a big week of talks with China.“We think there’s a chance that we could do something very substantial,” he told reporters of the China talks. “I think they’re coming to make a deal, we’ll see whether or not a deal can be made.”A Commerce Department spokesman said “today’s action is unrelated to the trade negotiations.”Besides Hikvision and Dahua, the companies put on the blacklist include artificial intelligence companies iFlytek, Megvii, SenseTime and Yitu Technologies.Also included are Xiamen Meiya Pico Information Co. Ltd, which bills itself as an “expert in digital forensics and cybersecurity in China,” according to its website, and Shanghai-based Yixin Science and Technology, a supplier of micro and nano fabrication equipment.IPO PlansThe ban complicates a planned initial public offering for Megvii. The company filed in August to go public in Hong Kong. The terms and timing of a listing weren’t disclosed, but people familiar with the company’s plans have said it’s seeking to raise as much as $1 billion. SenseTime lists Nvidia Corp. and Qualcomm Inc. among more than 700 global partners. Nvidia declined to comment, and Qualcomm didn’t immediately have a comment.Four of the eight companies put on the blacklist are already publicly traded in China. Dahua’s shares have risen 17% in the past year, while Hikvision is up 12.4%. iFlytek has gained 11.5% and Xiamen Meiya Pico Information has climbed 7.9%.When Huawei became the most prominent target for Trump administration export restrictions, its U.S. suppliers initially cut off contact with the Chinese technology company. After looking at the rules more closely, companies such as Intel Corp., Micron Technology Inc. and Qualcomm resumed at least partial supply.Human RightsThey have subsequently argued in Washington that blanket bans don’t have the targeted effect that the entity listings are intended to achieve because many of the products they supply to Chinese companies are readily available from their overseas competitors.A request for comment from the Chinese embassy in Washington wasn’t immediately returned.The move targets Chinese surveillance companies involved in the crackdown in Xinjiang, where as many as a million Uighur Muslims have been placed in mass detention camps, prompting criticism from around the world.“The U.S. government and Department of Commerce cannot and will not tolerate the brutal suppression of ethnic minorities within China,” said Secretary of Commerce Wilbur Ross said in a statement on Monday. “This action will ensure that our technologies, fostered in an environment of individual liberty and free enterprise, are not used to repress defenseless minority populations.”The blacklisting of these firms has been long in the making and national security advisers for months have been pushing for the president to move forward on the plan. But the timing is highly provocative, coming just days before China’s Vice Premier Liu He is schedule to arrive in Washington for high-stakes trade talks being watched by financial markets around the world.The White House in May had readied the sanctions package for surveillance technology companies accused of human rights violations but decided to hold back because of the ongoing trade negotiations.The Trump administration in June again considered the sanctions and had planned to roll them out with a human rights speech by Vice President Mike Pence on the anniversary of the Tiananmen Square massacre, Bloomberg has reported. The speech was postponed indefinitely -- at the request of Chinese officials -- so that Trump could secure a meeting with Chinese leader Xi Jinping at the Group of 20 summit in Osaka.Also to be placed on the Commerce Department’s “entity list” are the Xinjiang region’s public security bureau and 18 other municipal and county public security bureaus as well as the province’s police college.(Updates with share action from the third paragraph.)\--With assistance from Jennifer A. Dlouhy, Justin Sink, Ian King, Candy Cheng, Michael Hytha, Mark Milian, Edwin Chan and James Mayger.To contact the reporters on this story: Shawn Donnan in Washington at firstname.lastname@example.org;Jenny Leonard in Washington at email@example.comTo contact the editors responsible for this story: Margaret Collins at firstname.lastname@example.org, Sarah McGregor, Robert JamesonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Samsung Electronics Co. posted earnings that handily beat analyst estimates as stronger smartphone demand offset price declines in the memory chip business.Operating income was 7.7 trillion won ($6.4 billion) in the three months ended September, compared with the 6.97 trillion won analysts had forecast, according to estimates compiled by Bloomberg. Still, that is a profit decline of more than 50% for the Suwon, South Korea-based company.Samsung, the world’s largest producer of mobile phones and smartphone displays, is benefiting from solid demand for its Note 10 and for Apple Inc.’s iPhone 11 Pro, which uses the company’s OLED displays. Yet, the memory chip business has been its most profitable and uncertainties there have lingered because of the ongoing U.S.-China trade war and Japanese restrictions on the export of materials essential for chip and display production.“It’s better-than-expected results as mobile business made a huge improvement,” said Park Sung-soon, analyst at Cape Investment & Securities.Shares rose as much as 1.4% and had climbed 23% this year through Monday’s close.Sales for the third quarter were 62 trillion won, beating the average projection compiled by Bloomberg of 61.14 trillion won. Samsung won’t provide net income or break out divisional performance until it releases final results later this month.Samsung’s new high-end smartphones, including the Galaxy Note 10 and Galaxy Fold, helped cushion profit declines in the memory business. Its display business is recovering from a slump, with strong demand for OLED displays for smartphones such as Apple’s iPhone 11.The volatile business environment due to the U.S.-China trade war and South Korea-Japan spat has fueled uncertainties and made it harder for the market to gauge demand. As Japan’s export curbs on key materials used in chips and display production kicked in early July, clients raised their inventories of memory components to minimize risk, according to a note from TrendForce on Sept 26.“The stock-up demand was stronger than expected this third quarter due to the seasonal tailwinds and the pulling forward of end product shipments ahead of a possible new round of U.S. tariff increases in December,” said TrendForce. “Consequently, the overall trend of contract prices also shifted from decline to stability during the third quarter.”Analysts raised operating profit estimates in recent weeks as dynamic random-access memory shipments improved in the third quarter. Citi estimated Samsung would report semiconductor profits slightly higher than its previous estimates, supported by a 30% increase in DRAM shipments quarter-on-quarter, despite a 20% drop in DRAM prices.Concerns over the impact on the production of chips and displays have eased among some market watchers as Japan approved shipments of key materials to Samsung. Liquid hydrogen fluoride -- a highly purified chemical used to refine chips in production -- has not been approved for shipment to South Korea so far, but multiple reports and analysts indicate a local supplier may be able to provide substitutes.“Although DRAM and NAND demand is recovering and shipments in the third quarter were quite robust, there is skepticism about the sustainability of the demand upturn,” said Sanjeev Rana, technology analyst at CLSA.With the trade war issues hanging over the tech industry, Micron Technology Inc. warned that the tensions may prolong a memory-chip industry slump and gave a disappointing profit forecast. Despite the cautious outlook, investors are growing more bullish on Samsung amid hopes for an end to the slide.“As inventory de-stocking cycles end at major customers, we expect the memory industry to enter a recovery stage in 2020, while the magnitude of recovery will be more gradual (especially for DRAM) relative to previous upturn cycles,” J.P. Morgan said in an Oct 3 note.In the third quarter, contract prices for 32-gigabyte DRAM server modules fell 13.8% compared to the previous quarter while those for 128 gigabit MLC NAND flash memory chips rose 12.3%, according to inSpectrum Tech Inc.(Updates with analyst comment in fourth paragraph.)To contact the reporter on this story: Sohee Kim in Seoul at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Valuing a cyclical play like Micron Technology (NASDAQ:MU) stock is difficult for two reasons. In theory, valuation should be based on so-called "mid-cycle" earnings, but calculating those earnings isn't easy when it comes to MU. And volatile earnings like those of MU can lead to volatile trading, which is exactly what we've seen from Micron stock.Source: Charles Knowles / Shutterstock.com Indeed, in the last three years, MU stock has moved from under $20 to over $60 to a current price just north of $43. And its earnings have been all over the map. Micron was unprofitable in fiscal 2016 - and earned almost $12 per share on an adjusted basis in fiscal 2018. * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? Its EPS will likely head below $3 in fiscal 2020, based on analysts' average estimate. And so after MU stock looked almost absurdly cheap, at one point trading below four times its non-GAAP EPS, now, at 17 times its forward earnings. it looks reasonably valued at best,InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe issue with Micron stock at the moment is that the two ways of evaluating the stock seem to point in different directions. Fundamentally, I still see MU stock as a buy. Indeed, this summer I called it one of the best S&P 500 stocks to buy.But technically, the selloff following its Q4 earnings makes some sense. Like the Q4 report - which I thought was more concerning than investors seemed to believe - the company's Q1 guidance looked disappointing. Given the results and guidance, there's not enough evidence to believe a bottom in MU stock has been set for good.Some investors may choose to focus on the company's long-term outlook and ride out any near-term volatility in Micron stock. I wouldn't blame them. But more aggressive investors might want to wait for a better entry point that may well be available in coming months. Is the Bottom in for MU Stock?In theory, the multiple of a cyclical company like MU should contract at the top of cycles and expand at the bottom. That explains why the multiple of MU stock was so low last year: investors were (correctly) anticipating that MU's earnings would decline. And it also explains why investors are paying over 16 times earnings for Micron stock even as MU's profits are tumbling.But in practice, the Street's outlook isn't always accurate. Investors and analysts get too optimistic at the top, and they get too pessimistic at the bottom. Both phenomena have affected Micron stock in recent years.And so one of the tricks to trying to buy a cyclical stock is not just timing the fundamental bottom or top, but trying to time when investors' sentiment will shift. Cyclical stocks usually turn a couple of quarters before their businesses do. That has been the case with MU. But investors don't always correctly price companies' fundamentals into their stocks ahead of time.Those who buy Micron stock above $40 may be overly upbeat about the company's future performance. Its Q4 and Q1 guidance both came in below analysts' average estimates. And some short-term factors boosted the results of both quarters.Per MU's Q4 conference call, its customers in China are building inventory ahead of potential tariffs and political dislocations. Cost declines have been steeper than they will be going forward.The bounce of MU stock since the company's Q3 report suggests that investors are pricing in a cyclical recovery starting as soon as next year. I'm far from convinced that such a recovery is on the way.Given the current valuation of MU stock, the company's earnings and price-earnings multiples may both drop, pushing MU stock back to $30 or lower. The Fundamental Case for Micron StockThat said, I still believe MU stock can rise over the long-term. At this point, estimating its mid-cycle earnings is difficult, given the large changes in its annual profits. But as management said before and reiterated on its Q4 call, MU and its industry have improved over the last three years.Its production capacity has been reduced, enabling it to spend less on equipment. For the most part, its rivals like Samsung are also cutting their production.Moreover,the prices of MU's products are reasonably intact. The hope is that the boom and bust nature of its business will moderate, even if it likely never will completely end.Last year's $11.95 of adjusted EPS obviously represents a peak for MU. And given multiple factors, it may not be a peak to which Micron returns any time soon. But with adjusted EPS still likely to come in above $2 this year, it does seem like mid-cycle EPS conceivably could be $4 or $5.I'd certainly rather own Micron stock than, say, Intel (NASDAQ:INTC), given the likely long-term tailwinds for both DRAM and NAND memory that will benefit MU. But on the other hand, MU doesn't have the linear growth potential of Advanced Micro Devices (NASDAQ:AMD) or the diversification of Broadcom (NASDAQ:AVGO). However, MU's earnings still can rise.Assuming MU's mid-cycle EPS is $4+, that suggests the fair value for MU stock still should be above $50. And if supply and demand trends become more favorable than expected, Micron stock can rise still higher.But the question remains: when can that happen? With the market - including chip stocks - weakening, and MU's Q1 results likely to look soft, MU lacks a catalyst. So while I do expect MU stock to climb above its current level, I don't know that I necessarily expect it to rally any time soon.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post Short-Term Pain and Long-Term Gain for Micron Stock appeared first on InvestorPlace.
It was touch and go for the better part of yesterday's action, but as the closing bell approached and hopes for stimulative action took shape, the S&P 500 finished strong. All told, the index gained 0.8% on Thursday, pushing up and off a key technical support level.Source: Shutterstock Nvidia (NASDAQ:NVDA) led the way with nearly a 5% advance, as it's one of the names pegged as the biggest beneficiaries of central bank support for economic growth. General Electric (NYSE:GE) wasn't far behind with its 2.3% pop, driven by bolstered hope that it will be able to dig its way out of the hole it dug itself into after all … with the market's help.At the other end of the scale, Snapchat parent Snap (NYSE:SNAP) fell 3.4% in response to news that rival Instagram launched a "Threads" feature, while shares of booze company Constellation Brands (NYSE:STZ) sank 6% after posting its second-quarter results. Although it topped expectations, investors are increasingly concerned about the adverse impact its failing investment in cannabis company Canopy Growth (NYSE:CGC) is making on the bottom line.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 8 Best Cash Cow Stocks to Buy for Stable Returns Headed into the final trading day of the week, it's the stock charts of Wells Fargo (NYSE:WFC), Micron Technology (NASDAQ:MU) and Johnson Controls (NYSE:JCI) that have earned the closest looks. Here's why. Micron Technology (MU)Most stocks logged a gain yesterday, so the fact that Micron Technology shares did the same isn't terribly remarkable. Yet, there is something especially noteworthy about Thursday's -- and this week's -- action. MU stock found support right where it needed to, and confirmed it's pushing up and off that critical level. There's still more to do, but this is an ideal start. * Click to EnlargeThe support level in question is the 100-day moving average line, marked in gray on both stock charts. Notice on the daily chart Micron only had to kiss it one more time on Thursday to launch itself higher. * Zooming out to the weekly chart, we can see this recent strength, despite last week's stumble, is part of a broader uptrend fueled by a rising support line that extends back to the 2016 low. * On both stock charts you'll also see a yellow dashed line connecting all the highs since April. That proven technical ceiling is likely to come back into play again if this week's reversal takes hold as expected. Johnson Controls (JCI)This year's turnaround rally from Johnson Controls was impressive to be sure. But, no intellectually honest trader could deny that it has been slowing down the entire time. What is surprising is how abruptly that effort came to a screeching halt between Tuesday and Thursday.The scope of the plunge (along with Wednesday's bearish gap) sets the stage for a dead-cat bounce, along with another subtle development. But, it's more possible -- and perhaps even likely -- that too much damage has already been done to leave room for a quick rebound. * 7 Stocks to Buy From the Harvard Endowment * Click to EnlargeThe key breakdown was the move below the rising support line, plotted as a red dashed line on both stock charts, that had kept JCI stock propped up since early this year. The purple 50-day moving average line also played a support role. * The good news is, like many other stocks, Johnson Controls only had to brush its gray 100-day moving average line on Thursday to draw some bargain-hunting buyers back in. * The bad news is, the weekly chart has already dished out a bearish MACD crossunder. It would take a significant bullish jolt to push and keep JCI above the technical floors that were just snapped. Wells Fargo (WFC)The last time we looked at Wells Fargo back in late April, shares had recently completed a head and shoulders pattern. In fact, for good measure, WFC stock wasn't even going to recover without pulling back again from the first rebound effort. The stock has been drifting lower since … until last month. That's when shares started to form a rebound effort that has gelled nicely in the meantime. Thursday's bar largely seals the deal; one more catalyst would complete the rebound effort. * Click to EnlargeNote the shape and placement of yesterday's intraday reversal. WFC stock only had to touch the purple 50-day moving average line to start the rebound effort. * That same 50-day moving average line is nearing a move above the 200-day moving average line, marked in white on both stock charts. That crossover, called a "golden cross," is a key buy signal in and of itself. * On the weekly chart, we can see the foundation for the new rally effort is pretty solid. A low of around $43.40, marked with a red dashed line, was made three times since late-2016. The bulls drew a line in the sand there.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 * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post 3 Big Stock Charts for Friday: Wells Fargo, Johnson Controls and Micron Technology appeared first on InvestorPlace.
The Zacks Analyst Blog Highlights: Pfizer, DISH Network, Micron Technology, Walt Disney and C.H. Robinson
Today we'll look at Micron Technology, Inc. (NASDAQ:MU) and reflect on its potential as an investment. In particular...
The semis can't go up without Micron. The old doctrine, the Standard Oil type doctrine, is about sheer market power. It is absolutely true, for example, that Amazon has tremendous market power, but is there a soul who thinks that it raises prices?
Micron Technology, Palo Alto Networks, City Office REIT, L3Harris Technologies and National Fuel Gas highlighted as Zacks Bull and Bear of the Day
Micron stock is cyclical. It soars in an upturn and falls in a downturn. In the last upturn period, which lasted for two years, Micron stock surged 570%.