|Bid||64.58 x 1000|
|Ask||64.59 x 1000|
|Day's Range||64.32 - 65.31|
|52 Week Range||33.83 - 65.31|
|Beta (3Y Monthly)||2.17|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||2.00 (3.09%)|
|1y Target Est||N/A|
Ask a lot of Wall Street analysts what to buy today, and many of them will say Micron Technology (NASDAQ:MU). On the surface the memory maker looks dirt cheap for a tech stock. The price-earnings ratio is below 6, and price to sales is just 2. Assuming the inventory recession of last year is over, results could improve sharply. Even if they don't, MU stock is still a bargain.Source: Charles Knowles / Shutterstock.com But there's a reason Micron sells at 6x earnings. Micron's history is one of booms and busts, and this bust may not be over. That's because the good times have brought out some big new suppliers.So, buy or sit?InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Buy ArgumentThe buy argument starts with the most recent results, delivered in June. Net income of $1.2 billion, or $1.05 per share on revenue of $4.79 billion was "better than feared." Chip prices are stabilizing and could start to rise by the end of the year.Micron next reports earnings September 26. The consensus estimate is for net income of 42 cents per share, or about $500 million, on revenue of $4.5 billion. There is also a "whisper number" of 49 cents per share. * 7 Stocks to Buy In a Flat Market Analysts are expecting an upside surprise. They have set a low bar they expect the company to clear handily. The stock is still "priced for disaster" as our Thomas Niel wrote recently. Whether this is the bottom or next month is the bottom is less relevant than the idea that you can see the bottom. The Hold ArgumentWhile analysts have been boosting their price targets on the stock, $52-$55 isn't far from the $50 and change the stock is due to open at this morning.That's why the sages at InvestorPlace are telling bulls to be careful. Be careful in the short run, writes Will Healy. It's an "ugly road" to the top, writes Luke Lango, who recommended the shares at their bottom of $35.The concern, as always, is China. It's not just the trade war, with its tit-for-tat taxes. It's also China's stated goal of becoming independent of American chip suppliers. This starts with Micron. The U.S. government formally charged two Chinese companies with stealing Micron's intellectual property last year. Micron CEO Sanjay Mehotra was reportedly in China recently, meeting with one of the companies that were charged.There's also Intel (NASDAQ:INTC). Intel and Micron ended their memory partnership last year. Intel has opened a new front in the competition with new packaging, tying memory more closely with processing, including graphics processing.Samsung remains the biggest memory producer, with twice Micron's market share. Another Korean company, SK Hynix is also a bigger supplier than Micron. Bottom Line on Micron StockMy own optimism for Micron stock is based in large part on Mehotra, who became CEO two years ago. This came after a long career building Sandisk, now part of Western Digital (NASDAQ:WDC). * 10 Stocks to Sell in Market-Cursed September This is not Mr. Mehotra's first rodeo. He's like a great football coach you got because his previous team was sold.Mehotra has been making Micron more international, increasing hiring in India. Micron has the cost structure to compete against anyone, even the Chinese.While investors are getting ahead of themselves in the near term, the longer term remains bright. There is a super-cycle for memory. It began with phones, PCs and even cloud centers. Chip memory can also go into the tiny spaces needed to automate everything from factory equipment to refrigerators to traffic lights.If you have a five-year time horizon for a tech investment, you can buy Micron now. I said that months ago. It's still not too late.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Why Does Micron Stock Have Analysts Falling in Love All Over Again? appeared first on InvestorPlace.
Last week, Argus changed its intermediate-term assessment to Bullish after several major indices broke above the top bands of their recent trading ranges. Breadth also has been positive, with the advance-decline line near an all-time high and up-down volume similarly skewing "up."
Micron (NASDAQ:MU) stock has traded sideways since my last article on MU. On July 22, MU stock traded around $47 per share. MU took a dip in early August, before rebounding to its current price of nearly $49 per share. With NAND and DRAM chip prices expected to climb, could Micron stock be turning a corner? MU continues to trade at a low valuation. Investors expect its earnings to continue to drop. But an improving macro environment could be just the ticket to drive Micron stock higher.Let's take a closer look at MU stock and see if it's worth buying today.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Industrial Stocks to Buy for a Strong U.S. Economy Higher Chip Prices Are a Good Sign for MU StockThe memory-chip space may be at the dawn of a turnaround. Analysts anticipate better futures for both Micron and its rival, Western Digital (NASDAQ:WDC). Deutsche Bank analyst Sidney Ho raised his price target on MU stock to $55 per share. He believes the market for DRAM could improve further, going into the upcoming fiscal year.Another analyst, Mizuho's Vijay Rakesh, also is also bullish on Micron stock. He raised his price target on MU to $50 per share. Rakesh pointed out that NAND chip prices have improved since July. He believes Micron could beat average estimates when it announces its earnings on Sept. 26.Other news crumbs point to a memory-chip rebound. Memory-module supplier Adata Technology sees DRAM prices rebounding in the short-term, primarily due to seasonal demand. As the holiday season approaches, smartphone makers are ramping up production. But is this short-term trend the start of something big? Also important to consider is a looming, potential recession. And of course, there is still the U.S.-China trade war to contend with.Investors feared the Hong Kong protests would cause the trade war to deteriorate further. But with things cooling off, shares have rallied. However, we aren't out of the woods just yet. With both countries wanting to "win" the battle, it could be a long time before a deal is made.And MU is highly levered to China, particularly Chinese smartphone maker Huawei. China represents 50% of Micron's business. 17% of its revenue comes from Huawei, which is caught in the cross hairs of the trade conflict.As a result of these factors, Micron stock trades a at low valuation relative to the market. But is this discount justified? Let's take a closer look at the valuation of MU stock. Compared to Peers, Micron Is CheapMicron stock trades at a forward price/earnings ratio of 9.1. The company's enterprise value/EBITDA (EV/EBITDA) ratio is 3.3. Compare that to Western Digital. The latter company has a forward P/E of 21.5. It has an EV/EBITDA ratio of 12.3. While Western Digital is somewhat different from Micron (WDC does not sell DRAM), both companies have similar macro headwinds. WDC is priced for a turnaround. But MU stock remains priced for a worst-case scenario.MU is also materially cheaper than other types of semiconductor stocks. AMD (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA), which both swell graphics processing units, trade at significantly higher forward P/E and EV/EBITDA ratios. They have higher valuations than MU stock even though they are also getting hit with supply gluts and sales declines. But MU is a more cyclical company, and demand for GPUs is increasing more rapidly than demand for Micron's chips.However, the boom-and-bust nature of Micron stock could create opportunity. Investors can buy Micron stock at the bottom of the cycle and sell it when its results beat expectations. MU Is a Solid Short Term Bet, If Nothing ElseAt first glance, MU stock looks like a value trap.. But the DRAM and NAND markets could rebound. With an improved demand picture, investors could drive Micron stock higher. However, there are many caveats to this play. The U.S.-China trade war could accelerate. The rumored recession could finally emerge.Another caveat is that MU stock is likely not worth holding over the long-term. MU is a classic cyclical play. Investors should buy it when NAND and DRAM are down, and sell it when market demand picks up. But that's easier said than done.Lacking the growth potential of more specialized chip names, MU is likely not a stock that's going to double, triple, or quadruple. However, for contrarian investors, Micron stock may just be the play. A better entry point could emerge after its recent rally dissipates. MU stock is worth watching.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Improved Demand Could Boost Micron Stock appeared first on InvestorPlace.
EVP, Chief Legal Officer & Sec of Western Digital Corp (30-Year Financial, Insider Trades) Michael Charles Ray (insider trades) sold 92,043 shares of WDC on 09/05/2019 at an average price of $59.99 a share. Continue reading...
Cowen analysts think a gradual rebound in memory chip prices could help memory makers' results as soon as later this year.
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...
Micron shares broke out from reaction highs during Thursday's session following bullish analyst comments on DRAM and NAND price trends.
Western Digital Corp. broke out on the upside today. How should we play it? In this daily bar chart of WDC, below, we can see a potential base pattern going back to October. Declines to the $35 area have been bought in December, January and June.
Investing.com - Micron (NASDAQ:MU) surged 5% Wednesday as Deutsche Bank said shares of the chip company could mount a rally from current levels as memory prices appear to be bottoming.
The market was higher and lower on Friday, but when all was said and done, it essentially ended the day flat. The S&P 500 finished last week's action essentially flat, gaining a tiny 0.06% … the usual modest action we see before a three-day weekend, on the usual modest volume.Source: Shutterstock General Electric (NYSE:GE) may have been the ultimate reason stocks finished the week on a (barely) high note. It gained 1.8% on Friday, rallying on a partial legal victory that should ease its vulnerability to a lawsuit that alleges accounting fraud. The suit now must prove there was forehand knowledge of accounting problems that have become nightmarish for the organization and its shareholders.And, the market managed to overcome the drag that Chesapeake Energy (NYSE:CHK) proved to be on Friday, when it slumped more than 6%. There was no news, but a major selloff in crude oil and natural gas tripped up most names in the industry.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Lithium Stocks to Buy Despite the Market's Irrationality As the new, shortened trading week gets going though, it's the stock charts of Western Digital (NASDAQ:WDC), Weyerhaeuser (NYSE:WY) and Air Products & Chemicals (NYSE:APD) that deserve the closest looks. Here's why, and what to look for next. Weyerhaeuser (WY)Weyerhaeuser suffered the same rough end to 2018 most other stocks did. But, it hasn't enjoyed the same rebound most other names have mustered so far in 2019. Rather, the stock has seemingly been stuck on a range.Slowly but surely though, that's changing. While WY stock may remain trapped between support and resistance, it's also starting to find support in places where it hadn't. In the meantime, a handful of momentum indicators have flipped to a bullish mode. * Click to EnlargeChief among the momentum-driven clues is the moving averages, and the purple 50-day moving average line in particular. It has moved above the 200-day moving average line, marked in white, for the first time in months. * Since peaking in April, and really since late last year, Weyerhaeuser shares have been getting squeezed into the narrowing tip of a converging wedge pattern, framed by yellow dashed lines on both charts. * The upper boundary of the wedge pattern may break soon, but even if it does, there's another ceiling just above. The $27.60 area was established as a proven technical resistance area in the first quarter of the year. Air Products & Chemicals (APD)With nothing more than a passing glance, it would be easy to just say Air Products & Chemicals shares are bouncing around, moving sideways after a big runup over the course of the first half of the year. And, perhaps that's all that's happening at this time.A longer, more detailed examination of the chart since the end of July, however, reveals there may be more going on than it superficially seems. A pullback may be brewing, and the stock's vulnerability could be even more pronounced because of the 44% advance that took shape between January and July. * 10 Mid-Cap Stocks to Buy * Click to EnlargeThe biggest red flag is the streak of lower highs that has taken shape since the late-July peak, plotted as a yellow dashed line on the daily chart. * Additionally, notice how APD stock has broken back under the purple 50-day moving average line, as has the blue 20-day moving average line, for the first times since March. * Zooming out to the weekly chart we not only see a bearish MACD indicator, but the Chaikin line has taken a huge trip from a very high level in May to back under zero now. It's a sign that the volume trend turned decidedly bearish, and started to do so even before shares peaked and reversed. * Should things get worse, the most plausible support level is around $160, where the stock bounced around in a narrow range for all of 2018. Western Digital (WDC)Finally, the rebound Western Digital stock has been working on since the beginning of this year has really taken hold. It's not yet over a key hump, and has another one to test following that. But, we're starting to see support where we need to see it most, and starting to see momentum indicators solidify in a major way. * Click to EnlargeThe major highs going back to November are rather well aligned, marked as a red dashed line on both stock charts. That's the ultimate line in the sand. Notice it may be the neckline of what eventually turns into a head-and-shoulders pattern. * In the meantime, the more immediate ceiling is just under $58, marked as a yellow line on both stock charts, where shares have peaked a few times since the latter half of July. * Not only is the purple 50-day moving average line now above the white 200-day moving average line -- a so-called golden cross, indicative of sustained momentum -- the 50-day line offered the support needed to force last week's bounce out of a pullback. * Any real breakout wouldn't face its next significant technical test until it finds the turbulence around the $85 it went through in 2017 and early 2018.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post 3 Big Stock Charts for Tuesday: Weyerhaeuser, Western Digital and Air Products & Chemicals appeared first on InvestorPlace.
The Dow Jones was mostly flat Friday afternoon, but Nasdaq 100 component Western Digital could be ready to break out from a bottoming base.