|Bid||47.18 x 900|
|Ask||48.90 x 2200|
|Day's Range||47.72 - 48.74|
|52 Week Range||33.83 - 104.60|
|Beta (3Y Monthly)||1.71|
|PE Ratio (TTM)||17.51|
|Earnings Date||Apr 24, 2019 - Apr 29, 2019|
|Forward Dividend & Yield||2.00 (4.14%)|
|1y Target Est||56.43|
Micron in the 2019 Memory Industry Downtrend—What's Different?(Continued from Prior Part)Memory market dynamicsMicron Technology (MU) operates in a highly cyclical memory market, where memory prices are governed by demand and supply forces. When
Micron in the 2019 Memory Industry Downtrend—What's Different?(Continued from Prior Part)Micron stock falls ahead of its earningsMicron Technology’s (MU) fiscal 2019 second-quarter earnings will likely feel the heat of the demand weakness in
Micron in the 2019 Memory Industry Downtrend—What's Different?Micron’s stock price momentum Micron Technology (MU) was one of semiconductor investors’ favorite stocks back in 2016 and 2017, rising ~55% and 88%, respectively, in the years. This
Why Investors Should Closely Watch Micron's Q2 Earnings(Continued from Prior Part)Micron optimistic about second half of 2019 Previously, we saw that Micron’s (MU) customers stocked up memory inventory for the holiday season, but the inventory was
Why Broadcom Stock Is Gaining Momentum This Month(Continued from Prior Part)Broadcom beats expectations Broadcom’s (AVGO) earnings topped Wall Street’s expectations in the first quarter of fiscal 2019, the results for which it reported on March
Western Digital Corp NASDAQ/NGS:WDCView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is moderate * Economic output in this company's sector is expanding Bearish sentimentShort interest | NeutralShort interest is moderate for WDC with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding WDC are favorable, with net inflows of $14.25 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, but is accelerating. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Micron Technology (MU) stock has outperformed the semiconductor market's impressive 2019 comeback. Despite this climb, shares of Micron rest far below their 52-week high. So, is now the time to buy Micron stock with the company scheduled to report its second-quarter fiscal 2019 financial results after the closing bell Wednesday?
New product additions will enhance the Western Digital's (WDC) existing product portfolio and aid it in securing a strong foothold in the global SSD market.
OCP GLOBAL SUMMIT, Booth #D14 – Western Digital Corp. , a leading data infrastructure company, will be showcasing one of the broadest storage portfolios in the industry—from embedded flash to scale-out object storage systems—which enable customers to leverage the value of data like never before.
A rally in shares of Micron (NASDAQ:MU) came to a screeching halt last Wednesday after a niche equities research firm cut their numbers for fiscal 2019. MU stock fell 4.6% on the report.Source: Mike Deal via FlickrWe'll take a closer look at the charts for MU stock in a moment, but on the plus side, shares were able recover a bit and close above the 50-day moving average after opening below this mark on Friday. This showed that bulls still have some control, even if they're fumbling the ball a bit.What's the main issue with Micron stock? It's that seemingly most investors "have one foot out the door." It's not unlike Ford (NYSE:F) or General Motors (NYSE:GM) and the rationale is simple: These companies operate in boom-and-bust environments.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMicron, Ford and GM do great when their markets are doing great. But when the economy grinds to a halt, the car makers really feel the pinch, just like when memory pricing power erodes for Micron. As such, many investors are a fickle bunch -- they are long the name but willing to sell on the first sign that the tides are turning from boom to bust. It's one reason why these stocks have such incredibly low valuations. Evaluating Micron StockWhen MU stock fell from ~$40 to $37.50 last week (the first test of the 50-day), it came following an analyst warning. Specifically, Cleveland Research's Chandler Converse said DRAM pricing would likely hurt the company's full-year revenue. As such, the firm slashed its estimates from $25.5 billion to $24 billion. Weak demand, increased competition and higher inventories are the culprits. This also hit Intel (NASDAQ:INTC) and Western Digital (NASDAQ:WDC). * 7 Dow Jones Stocks to Buy DRAM made up 68% of Micron's total revenue in the most recent quarter. Management also told investors on the conference call that pricing will be under pressure in the current second quarter.President and CEO Sanjay Mehrotra said:"DRAM demand weakened through the course of our fiscal first quarter. Since the start of this fiscal second quarter, the weakening demand trend has continued and our near-term visibility is limited."As such, Q2 guidance came in way below expectations, in a range from $5.7 billion to $6.3 billion, below consensus estimates of $7.18 billion. Earnings guidance also came up way short.However, there was a bit of optimism on the call as well. Management said, "our cost reductions in DRAM and NAND have meaningfully outpaced the industry over the last three years" and that 2019 should experience "healthy year-over-year cost declines in DRAM and NAND."All of this took place back in December when MU last reported earnings. At a conference last month though, management expressed confidence in the second half, saying demand for DRAM remains healthy but the company is still working through inventory. Even with consensus expectations calling for a 38% decline in full-year earnings, MU stock trades at just 5.7 times this year's earnings. Trading MU Stock Price Click to EnlargeMU stock price did a good job on Friday of reversing higher after opening below the 50-day. But it still has work to do. My fear now would be the Micron stock price stalling below $42, thus cementing in a lower high, a bearish technical development. With the 100-day looming at $40 and this level serving as the most recent breakdown point, that could be a reasonable area for shares to stall. * 5 Airline Stocks In Serious Trouble Let's try not to get "too cute" with the trade though. While that may happen, the specifics don't really matter. What matters is which way MU breaks. If the stock stalls and breaks back below the 50-day level, then $34 could be on the table. Bulls will want to see a push above $40 and the 100-day, and retest of prior uptrend support. This could push Micron stock to the $44-$45 area.Keep in mind, MU stock reports earnings on March 20.Although MU stock hasn't been a great earnings performer as of late, investors have already digested a lot of bad news -- disappointing results in December and poor guidance -- and have rallied since. A strong outlook will go a long way into helping this name.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. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Growth Stocks Racing to All-Time Highs * 5 Warren Buffett Stocks You Can't Go Wrong With * Game On for These 3 Gaming Stocks Compare Brokers The post Is Micron Stock Poised To Make New Lows On Changes To DRAM Chip Outlook? appeared first on InvestorPlace.
Nvidia (NVDA) shares jumped over 5% in morning trading Monday after the company announced that it will acquire Mellanox (MLNX) as it tries to expand its data center business in the cloud computing age. The deal, which is valued at $6.9 billion, would be Nvidia's largest-ever purchase.
How Micron Stock Could Be Affected by Fall in Chip Demand(Continued from Prior Part)Analysts’ recommendations Out of the 34 analysts covering Micron (MU), 19 analysts have rated the stock a “buy,” while 14 analysts rated the stock a
The fundamental case for hard drive manufacturer Seagate Technology plc (NASDAQ:STX) seems pretty easy to make. STX stock is cheap, trading at 1en times analysts' average fiscal 2019 earnings-per-share estimates. And Seagate stock also offers one of the best dividends of any S&P 500 stock, yielding 5.45% at the moment.Source: Shutterstock The problem is that a cheap valuation, and particularly, a high dividend aren't enough on their own to guarantee that a stock will perform well. Investors in stocks like General Electric (NYSE:GE), Owens & Minor (NYSE:OMI), Anheuser-Busch InBev (NYSE:BUD) and Kraft Heinz (NASDAQ:KHC) have learned that lesson lately. And there are reasons why STX stock looks so cheap and why its dividend yield is so high. * 5 Airline Stocks In Serious Trouble The Case Against STX StockFrom a broad standpoint, the main concern about STX stock at this point is reasonably clear: Seagate's business is declining. Analysts' consensus fiscal 2019 revenue estimate suggests that, on average, by the end of this year, its sales will have declined over 5% per year for seven years. Earnings - again, assuming the Street is correct - will follow a similar (and slightly worse) trajectory. The-top-and-bottom-line declines factor in the impact of acquisitions (including Seagate's purchases of Xyratex and a flash business from Broadcom (NASDAQ:AVGO)).InvestorPlace - Stock Market News, Stock Advice & Trading TipsHard disk drive (HDD) sales have been pressured by continuous changes, such as lower PC unit sales and a shift away from DVRs (digital video recorders). In general, selling HDDs is tough: as Seagate itself points out in its filings, HDD prices generally decline over time.Ten times earnings seems "cheap." A 5.4% dividend yield looks attractive. But dividends don't drive valuations, and STX will have to cut that distribution at some point because its business is declining. Seagate admittedly doesn't look to be in danger on that front just yet, since its payout ratio still sits at a reasonable 55%.That said, Seagate hasn't raised its dividend since 2016. And it only takes one downcycle - or a few more years of declining profits - for that payout ratio to rise, potentially putting the dividend at risk. The Case for Seagate StockTo be fair, Seagate's current outlook isn't quite that simple. Of late, STX has shown some signs of life. HDDs provide memory to outsourced cloud providers, at a cheaper cost than flash/NAND products from rivals like Micron Technology (NASDAQ:MU). And STX's revenue rose 4% in fiscal 2018, while its prices have rebounded, with its ASPs (average selling prices) jumping to $69 in FY18 from $61 two years prior.As a result, Seagate was able to drive adjusted EPS of $5.51 last year. And while the company is unlikely to repeat that performance this year, some external factors are weighing on its profits. Specifically, there's been a clear slowdown among cloud providers, who have overbuilt their inventories, as fellow memory provider Western Digital (NASDAQ:WDC) has pointed out. Both Western and Seagate expect that headwind to abate in the second half of calendar 2019, when cloud providers should begin growing again.And while the shares of MU and WDC have been hammered - down 38% and 52% from their 52-week highs, respectively - STX has performed a bit better. It's down just 26% from its highs, thanks to a nice rally from its December lows.That relative strength makes some sense. STX's HDD business might be growing more slowly than NAND and DRAM memory businesses. But in terms of demand and particularly pricing, the HDD business is more stable. That's a key reason why Seagate stock hasn't been pressured to the same extent as other memory stocks.And given the low valuation of STX stock, stable is good enough. If strengthening cloud demand offsets pressure in PCs and elsewhere, cost-cutting and new business initiatives (including the company's small flash business) can drive modest growth. Something like 12-13 times $5 of EPS by FY21 gets STX stock over $60. Including dividends, that suggests annual returns of 20%. What to Watch ForThere are a couple of near-term problems with the bull case on Seagate stock, however. The first is - perhaps oddly - NAND pricing. Plunges in NAND have pressured other stocks, but they also create a risk for Seagate's business. NAND performs better than HDDs, but HDDs have kept some market share due to their markedly lower upfront cost.As a result, multiple analysts have worried that HDDs could be "cannibalized" by cheaper NAND. Seagate CEO Dave Mosley was asked directly about that potential trend at a recent conference and admitted that a number of STX's products could be negatively impacted.The second problem is that even the "cheap" multiple of STX stock leaves little room for error. Seagate already is taking cost out of its business this year, giving it less room to do so going forward. Declining prices will consistently pressure STX stock and make its execution paramount.And so ten times earnings might seem cheap , but for STX stock, it's really not. The forward price/earnings multiples of STX stock have stayed mostly in the single-digits for the past few years. Analysts don;t expect STX to grow much in fiscal 2020, and they don't expect STX stock to rise much, either. Analysts'average price target on STX stock (a bit over $43) actually is below the current STX stock price of $45.60.I do see value in the memory space, but I'm not sure that Seagate provides value. Micron stock still seems attractive, as I wrote in January, for reasons that go beyond the fact that it is "cheaper" on an earnings basis. WDC's case is weaker, but it could attract value-seekers as well.For Seagate, however, the problem is relatively simple. It's in a really tough business. It's not a business that is going to be valued at 20 times or even 15 times earnings at any point other than the bottom of the cycle. If STX is being too optimistic about the second half of the year, Seagate actually could be closer to a cyclical top. And that would spell disaster for STX stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks Already Rewarding Shareholders In 2019 * The 10 Best-Performing ETFs This Year * 7 Stocks That Should Be Worried About a Data Dividend Compare Brokers The post Why Seagate Stock Could Be a Yield Trap appeared first on InvestorPlace.
Shares of Coty, Philip Morris, Western Digital, Exxon Mobil and General Motors don't just pay high dividends, but they're also crushing the major averages this year.
If you want to know who really controls Western Digital Corporation (NASDAQ:WDC), then you'll have to look at the makeup of its share registry. Institutions often own shares in moreRead More...
Shares of Micron Technology (MU) have surged 20% so far this year, to outpace its industry's comeback. Clearly, many stocks are up in 2019 as the market tries to bounce back from its late 2018 downturn. The question is can Micron stock continue to climb after it reports its quarterly earnings results on March 20, as chip firms face a downturn?
Computer memory manufacturer Western Digital (NASDAQ:WDC) has finally bounced. Between March and December of last year, Western Digital stock lost over two-thirds of its value. Since hitting a six-year low late last year, however, WDC stock has gained some 55%, rising 42% in 2019 alone.Source: Shutterstock The question is whether the bounce will continue. Management unsurprisingly remains optimistic, calling for improvements in the second half of calendar 2019 (corresponding to the first half of Western Digital's fiscal 2020). I was more skeptical than WDC's management a month ago, citing worries about memory prices and demand. * 7 Dow Jones Stocks to Buy But that skepticism looks too cautious to me at the moment, and WDC stock has risen another 12% since my column was published. It's outperformed Micron (NASDAQ:MU), which at the time I called the better of the two memory plays, and which itself continues to rally.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut for several reasons, I still see some risk to the rally of WDC stock in the near-term. Western Digital stock does look cheap, trading at 9.5 times analysts' consensus FY19 earnings-per-shares estimate. And demand from cloud providers like Amazon.com (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL,GOOG) should rise over time. Investors clearly are buying WDC stock ahead of an expected second-half rebound, with an eye towards the 2018 highs of WDC stock. If Western Digital stock does regain that level, it will have more than doubled from its current price.Western Digital stock remains heavily cyclical, however. And there are non-cyclical concerns at play as well. The rally so far makes some sense, since WDC stock simply got too cheap. That, however, may no longer be the case. Will The Rally of WDC Stock Continue?Investors looking for a reason to buy - or stay long - WDC stock should review COO Mike Cordano's presentation at a conference last week. Even as Western Digital stock has slumped of late, the message from its management has been reasonably consistent: Weaker results from Western Digital (the company is guiding for an 80%+ decline in earnings in its fiscal third quarter) aren't a case of the memory cycle turning south for good.Rather, the sector is suffering some short-term disruption, coming in large part from overly high inventories at key cloud customers. Cordano reiterated this point, noting that bit consumption (i.e, end- customer demand) was likely to be "flat to slightly down" in the first half of 2019. "It's really getting the inventories underneath in alignment" that is the issue, the COO said.Essentially, Western Digital's customers bought too much memory in recent quarters. That inventory needs to be deployed in new datacenters before WDC's growth can restart. And Western Digital itself doesn't expect that process to take all that long, as Cordano said that positive trends should return as soon as "late [calendar] Q2."There are echoes here of the bull cases for WDC stock, MU, and Seagate Technology (NASDAQ:STX) at their peaks last year. There's no doubt that memory is a cyclical business. Prices rise; manufacturers increase capacity; prices fall;manufacturers reduce capacity ; the cycle repeats. But the underlying demand trends are positive. Datacenter demand is a long-term growth driver. Connected home and automotive markets will also consume prodigious amounts of memory.Meanwhile, as Cordano noted, WDC and its rivals already have cut their capacity. That, plus a resurgence of demand, means the industry should get back to good times in only a matter of months. The Risks to Western Digital StockAfter investors became worried about WDC stock in late 2018, investors are back to buying the bull case on WDC stock. That's why WDC stock gained after its earnings despite missing consensus expectations.But I have two core concerns about WDC stock at this point. The first is that WDC's management may well be wrong. Western isn't the only one seeing a glut in datacenters' inventories: similar inventory issues are part of why Nvidia's (NASDAQ:NVDA) shares have plunged. But the entire industry seems convinced that the worst will be over soon.That said, the chip space on the whole - and the memory industry in particular - historically hasn't timed the cycle all that well. Management's overly optimistic forecasts usually cause industry participants to build too many chips at the top of cycles. As a result, investors should take bullish commentary with at least a grain or two of salt.The second question is whether WDC stock is the best play. Western's performance, share price aside, hasn't exactly been stellar, with notable market share declines since its 2016 acquisition of Sandisk. Micron stock still looks attractive just above $40. And the case for Western Digital - that continuous tailwinds are worth the price of cyclical swings - has been made about companies across the chip sector.In December, I called out Applied Materials (NASDAQ:AMAT) as an intriguing play based on that thesis. NVDA obviously is a very different stock, but for investors who believe datacenter demand issues are just a two-quarter blip, there's a strong case for a rebound of Nvidia stock.At this point, I'm not sure WDC stock is a good play, given the possibility of another decline in memory demand, particularly in categories outside of datacenters.Regardless, I'm highly skeptical about the idea that it's the best play. The chip space has no shortage of stocks with attractive valuations. Given the risks posed by WDC stock, even at its current, low valuation, I question whether Western Digital stock is one of them.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Should Be Worried About a Data Dividend * 5 Cheap ETFs Worth Considering * 7 Cheap Stocks Under $5 That Could Soar Compare Brokers The post The Risks to the Rally of Western Digital Stock appeared first on InvestorPlace.
Why Micron and Western Digital Slid Over 5% YesterdayDRAM contract prices fall the most in eight years A DRAMeXchange report on March 5 stated that first-quarter PC DRAM (dynamic random access memory) contract prices fell around 30%, the sharpest
Western Digital (WDC) and WekaIO announce collaboration to develop NVMe-based flash storage platform. Western Digital Capital has made an undisclosed amount of investment in WekaIO for the project.
Shares of Micron Technology Inc. sank 5.1% in morning trade Wednesday, to pace the chip sector's decliners, as they extended the previous session's selloff which follow a downbeat analyst outlook for memory chip pricing. On Tuesday, Micron's stock fell 2.6%, after Susquehanna analyst Mehdi Hosseini said his research indicated that DRAM and NAND pricing in the first half of 2019 were "tracking below prior expectations." Hosseini also said margins are not expected to dramatically rebound" given excess inventory accumulation. "In this context, we argue that margin pressure is something that will limit earnings and which has yet to be fully dialed into consensus expectations nor stocks," Hosseini wrote in a note to clients. The PHLX Semiconductor Index fell 1.0%, with 28 of 30 components losing ground. Micron's stock has run up 19% year to date and the SOX has rallied 16%, while the S&P 500 has advanced 11%.